Tata Motors announced on Thursday, March 7, that it will increase prices of its commercial vehicles (CV) by up to two per cent from April 1, 2024. The price increase is to offset the residual impact of the past input costs, said India’s top automaker by revenue in a regulatory filing to the stock exchanges.
While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles, it added. Tata Motors had last hiked prices for its CV range by up to three per cent in January.
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Earlier this week, Tata Motors said it will split into two listed companies, separating its CV business from its passenger vehicle arm. The CV entity will likely generate substantial earnings and cash flow to comfortably service its debt obligations, said ratings agency Moody’s on Wednesday.
Tata Motors reported a surge of 137.5 per cent in consolidated net profit at ₹7,025.11 crore in the October-December quarter of fiscal 2023-24 (Q3FY24), compared to ₹2,958 crore in the year-ago period. India’s most valuable carmaker beat Street estimates as it reported a more than two-fold increase in net profit driven by strong sales in its British luxury car unit, Jaguar Land Rover (JLR).
Tata Motor’s total revenue from operations in the third quarter of current fiscal rose 25 per cent to ₹110,577 crore, compared to ₹88,488.59 crore, led by JLR sales which rose 27 per cent in the period. On the operating front, the auto major’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 59 per cent to ₹15,333 crore, compared to ₹9,644 crore in the year-ago period.
Also Read: Tata Motors Q3 Results: Net profit surges 137% to ₹7,025 crore, revenue up 25% YoY; 5 key highlights
JLR’s revenue in the December quarter rose 22 per cent to £7.4 billion, increasing wholesales to fulfil more client orders. Revenues for year-to-date (YTD) rose 35 per cent year-on-year (YoY) to £21.1 billion – the unit’s highest ever revenue in the first nine months of a financial year.
Tata Motors is India’s leading manufacturer of commercial vehicles, including trucks and buses.
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Published: 07 Mar 2024, 02:29 PM IST