Tata Motors plans to raise the prices of its commercial vehicles starting April 1st.

Tata Motors has revealed plans to implement a 2% price hike on its commercial vehicles effective April 1, as disclosed in an announcement made on Thursday. This decision stems from the need to counterbalance the residual effects of previous input cost escalations. The Indian automotive giant, recognized as the country's leading commercial vehicle manufacturer, clarified that the price alteration will vary across individual models and variants, impacting the entire spectrum of commercial vehicles within its lineup. Prior to this adjustment, Tata Motors had raised prices for commercial vehicles by 3% starting January 1. Similarly, a 0.7% price augmentation for its passenger vehicles was initiated from February 1, attributed to mitigating heightened input costs.

Market response to the news was reflected in Tata Motors' stock performance, witnessing a 2.14% increase and settling at Rs 1,039.35 on Thursday. Notably, the closing price brought the stock within close range, just 2.53% shy of its one-year peak of Rs 1,065.60 recorded on March 5.

In a separate development earlier this week, Tata Motors unveiled plans to split its operations into two distinct publicly traded entities. One entity will focus on commercial vehicle operations and associated investments, while the other will encompass the passenger vehicle segment, inclusive of passenger vehicles, electric vehicles, Jaguar Land Rover (JLR), and related investments. This strategic demerger follows the prior subsidiarization of the passenger vehicle and electric vehicle businesses in 2022. The move aims to enhance operational agility and accountability within each segment, enabling them to pursue tailored growth strategies independently.

Tata Motors' decision to adjust prices for its commercial vehicles underscores the prevailing market dynamics and the company's proactive approach to manage cost pressures while maintaining competitiveness. The impending demerger signifies a strategic realignment geared towards optimizing performance and unlocking value across its diverse business portfolio.