Auto major Tata Motors has announced yet another price hike in passenger vehicles from May 1, 2023, less than a month after the Tata group company said it’ll raise commercial vehicle prices by 5%. "Tata Motors, India’s leading vehicle manufacturer today announced that it will marginally increase the price of its passenger vehicles from May 1, 2023. The weighted average increase will be 0.6%, depending on the variant and model," Tata Motors said in a statement today.
This is the third time in three months that Tata Motors has hiked the prices of its vehicles.
The company said it has been absorbing a significant portion of the increased costs on the account of regulatory changes and a rise in overall input costs, and is hence compelled to pass on some proportion through this hike.
The country’s largest commercial vehicle manufacturer had hiked the price of automobiles by up to 5%, with effect from April 1. The decision was taken as the company complies with more stringent BS6 Phase II emission norms, the Tata Group company said.
Tata Motors is transitioning its entire vehicle portfolio to meet BS6 Phase II standards, which means customers and fleet owners can expect a range of cleaner, greener, and technologically superior offerings that deliver higher benefits and lower total cost of ownership.
In February 2023, the company hiked the prices by 1.2% across its internal combustion engine (ICE) passenger vehicle portfolio due to the rise in input costs.
Ahead of the development, the shares of Tata Motors closed 0.72% up at ₹468.85 on the Bombay Stock Exchange on Thursday. With the current share price, Tata Motor's market capitalisation stands at ₹1,55,953.72 crore.
In the past month, the shares of Tata Motors have surged 12.53%; 18.32% in the past six months; and 18.76% in the year-to-date period. The company hit a 52-week high of ₹494.50 on August 17 last year, whereas it hit a 52-week low of ₹366.05 on May 12 last year.
During the quarter that ended December 31, 2022, Tata Motors clocked a net profit of ₹2,957.71 crore against a loss of ₹1,516.14 crore in the corresponding period of the last fiscal. Its revenue surged 22.5% YoY at ₹88,488.59 crore, with PV revenue rising 37% year-on-year to around ₹11,700 crore, reflecting higher volumes and realisations.
Tata Motors' global wholesales in Q4 FY23, including Jaguar Land Rover, were at 3,61,361, higher by 8% YoY. Its commercial vehicles and Tata Daewoo range in Q4 FY23 were 1,18,321, lower by 3% YoY. The company registered a total sales of 2,51,822 units in Q4 FY23, up 3% over Q4 FY22 in the domestic market. Its PV wholesales in Q4 FY23 were at 1,35,654, higher by 10% compared to Q4 FY22.
