Tata Motors Ltd. has decided to increase the prices of its commercial vehicles for the second time this year to offset the impact of input costs.
From April 1, India's largest truckmaker by volumes will raise the prices of its commercial vehicles by up to 2% to offset the residual impact of past input costs, according to an exchange filing on Thursday. While the hike will vary across models and variants, it will be applicable across the entire range of commercial vehicles.
Tata Motors raised the prices of commercial vehicles by up to 3% in January, citing rising input costs. In February, the company sold 35,085 trucks and buses, a decline of 4% from the year earlier, according to company data.
The announcement of the price hike comes days after the automaker unveiled a demerger plan to list two separate entities—one housing the CV business and the other the PV business, including passenger cars, electric cars and luxury cars under the Jaguar Land Rover brand.
The move is aimed at unlocking value as well as pare debt at India's most valuable automaker by market capitalisation, according to analysts.
Shares of Tata Motors closed 2.14% higher at Rs 1,039.35 apiece on the BSE, compared to a 0.05% advance in the benchmark Sensex.
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