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India’s largest commercial vehicle maker, Tata Motors (NYSE:), announced on Monday that it will be increasing the price of its commercial vehicles by up to 3% effective from October 1, 2023. The company stated in a regulatory filing that the price hike is intended to offset the residual impact of past input costs and will apply across the entire range of commercial vehicles.
This marks the second time this year that Tata Motors has raised its prices. The company had previously increased the price of commercial vehicles by 5% starting April 1, 2023. This earlier hike was part of an effort to comply with more stringent BS6 phase II emission norms. As Tata Motors transitions its entire vehicle portfolio to meet these standards, customers can expect a range of cleaner and technologically superior offerings.
In addition to commercial vehicles, Tata Motors also raised the cost of passenger vehicles twice in 2023, with a 0.6% increase in May and a 1.2% hike in January.
Despite these price increases, sales for Tata Motors have seen a slight dip. In August 2023, domestic and international sales fell to 78,010 units compared to 78,843 units in August 2022. The sale of commercial vehicles including domestic and international business stood at 32,077 units in August 2023 against 31,492 units in August 2022, marking a decline of 1.9%.
However, the company’s financials have shown improvement. Tata Motors reported a net profit of Rs 3,202.80 crore (Rs 1 crore = $120,409) in the first quarter of the current financial year, bouncing back from a loss of Rs 5,006.60 crore during the same period last year. Its revenue from operations rose by an impressive 42.54% to Rs 1,01,528.49 crore.
On Monday, shares of Tata Motors closed at Rs 640.85 ($1 = Rs 83.05), up by 1.04 percent, outperforming the Sensex which ended 0.4 percent lower.
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