Tata Motors announced that it will increase the prices of its commercial vehicles by up to 2 per cent, effective April 1. The price increase is to offset the residual impact of the past input costs, the company said.
While the price increase will vary according to individual models and variants, it will be applicable across the entire range of commercial vehicles.
India’s leading automaker by revenue had previously raised prices for its commercial vehicle range by up to 3 per cent in January.
Earlier this week, Tata Motors announced its decision to undergo a strategic split into two separate listed companies, effectively segregating its commercial vehicle (CV) business from its passenger vehicle arm.
The restructuring involves consolidating the commercial vehicles business and its related investments into one entity, while the passenger vehicle business, encompassing electric vehicles, Jaguar Land Rover, and associated investments, will form the second entity.
Moody’s on Wednesday affirmed Tata Motors’ Ba3 corporate family rating with a positive outlook, including the Ba3 senior unsecured instrument ratings for Tata Motors.
Despite the demerger, Moody’s noted Tata Motors’ strong position in India’s commercial vehicle industry, expecting ample free cash flow and robust credit metrics for its commercial vehicle operations.
