Tata Motors is to increase the prices of its commercial vehicles by up to 2 percent from April 1, 2024 to mitigate the impact of past material price inflation.
“The price increase is to offset the residual impact of the past input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles,” the automaker said in a press release.
The upcoming price hike from April will be the second one in CY2024. On December 11, the company, which is India’s largest commercial vehicle manufacturer, had announced a price increase by up to 3 percent from January 1, 2023, citing the reason as one to "offset the residual impact of the past input costs" and applicable across the entire commercial vehicle range.
In the first 9 months of the current fiscal, as per SIAM data, Tata Motors dispatched 264,733 CVs across categories in the domestic market, down 4.37% YoY (April 2022-December 2023). In January 2024, CV sales were 30,643 units, down 2% (January 2023: 32,780 units). In February, Tata Motors sold a total of 33,567 CVs, which represents a decline of 4 percent from the year-ago period (February 2023: 35,144 units).
Tata Motors recently announced its plans to demerge the company into two separate publicly traded companies - one for the commercial vehicle business and the other for the passenger vehicle business, which will include electric vehicles and Jaguar Land Rover, to unlock more value for its businesses.