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Tata Motors to increase price of commercial vehicle by up to 2% from July

This marks the third price hike this year, after the Indian automaker increased prices by up to 2% in March and 3% in January

Tata motors

Tata Motors

Vasudha Mukherjee New Delhi

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Indian automaker Tata Motors has announced a price hike of up to 2 per cent for its commercial vehicles effective from July 1, 2024. The price adjustment is necessary to counterbalance the rising costs of commodities, the company said in a regulatory filing on Wednesday.

Tata Motors stated that the price increase would be applied across its entire range of commercial vehicles, with the exact increment varying according to individual models and variants. This marks the third price hike this year, following a similar increase of up to 2 per cent in March and 3 per cent in January.

The company emphasised that the price rise is unavoidable due to the escalating prices of raw materials. Despite the price increase, Tata Motors’ shares have seen a 26.6 per cent rise this year, although they experienced a slight dip of 0.2 per cent today.

As one of India’s largest manufacturers of trucks and buses, Tata Motors maintains a significant global presence. Earlier this month, the company announced plans to invest between Rs 16,000 crore and Rs 18,000 crore in its electric vehicle (EV) division by the fiscal year 2029–30 (FY30). Currently offering four electric car models, Tata Motors aims to launch six more by March 2026.


The automaker is setting ambitious goals for its passenger vehicle (PV) market share, aiming to capture 20 per cent by FY30. As of 2023–24 (FY24), Tata Motors held a 13.81 per cent share of the Indian PV market in volume terms, according to data from the Society of Indian Automobile Manufacturers.

Financially, company posted a more than threefold increase in its profit after tax for the fourth quarter of FY24, reaching Rs 17,528 crore, driven by a 13.3 per cent growth in revenue. Consolidated revenues for the quarter approached Rs 1.20 trillion.

For the full financial year, Tata Motors reported a 12-fold surge in net profit, amounting to Rs 31,806 crore, with consolidated revenues reaching an all-time high of nearly Rs 4.38 trillion. FY24 saw the company achieve its highest-ever figures in several key areas: revenue, earnings before interest, tax, depreciation and amortisation (Ebitda) at Rs 62,800 crore, profit before tax and exceptional items at Rs 28,900 crore, free cash flow for the auto business at Rs 26,900 crore, and dividend payout at Rs 2,310 crore.

Shares of Tata Motors were trading at Rs 982.75, down 0.29 per cent, at 12:15 PM on the BSE.



 

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First Published: Jun 19 2024 | 12:26 PM IST

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