Tata Motors, India’s largest commercial vehicle manufacturer, announced on September 18 its decision to raise the prices of its commercial vehicles by up to 3%, effective October 1, 2023. This adjustment is aimed at mitigating the effects of previous input cost fluctuations.
The price hike will vary based on individual models and variants and will be applicable across the entire range of commercial vehicles.
On March 4, Tata Motors disclosed its plan to demerge its businesses into two separate listed entities: commercial vehicles (CV) and passenger vehicles (PV). This decision was met with positive reception from brokerages. Global brokerage firm Morgan Stanley issued an ‘overweight’ recommendation on Tata Motors on March 5, while Nomura maintained a “buy” call with a target price of Rs 1,057, representing a 7% upside from the current market price. Nomura highlighted that in the medium term, the businesses would have more autonomy to pursue their respective strategies. Furthermore, rating agency Moody’s affirmed Tata Motors’ BA3 ratings on March 6, with a positive outlook.
Tata Motors stated that its commercial vehicle, passenger vehicle (including electric vehicles), and luxury vehicle Jaguar Land Rover (JLR) businesses have been operating independently under their respective CEOs since 2021, implementing distinct growth strategies.
During the trading session on March 7, at 2:32 am, Tata Motors’ stock was trading at Rs 1039.50 apiece on the NSE, reflecting a 2.15% increase (Rs 21.85) compared to the previous day’s closing price. The stock had reached a 52-week high of Rs 1,065.60 on March 5.
