Tata Motors To Hike Commercial Vehicles Prices By Up To 3% From October
Shares of Tata Motors Limited traded 0.73% higher at ₹645 in the early hours of September 20, extending gains for the third session in a row after the company announced that it would increase the prices of its commercial vehicles up to 3%, effective October 1. India's biggest commercial vehicle manufacturer explained that they are raising prices across all their commercial vehicles to cover the lasting effects of previous increases in input costs.
In the last six months, the Tata Motors stock has gained 56%, making it the highest-performing stock among all major automobile companies listed on the bourses. Earlier this month, Tata Motors posted a marginal 1.9% year-on-year growth with total sales of 32,077 units in August, compared to 31,492 units the previous year. Domestic sales of medium and heavy internal combustion vehicles in August, including trucks and buses, stood at 13,306 units, compared to 12,069 units last year.
Expanding in the Compact SUV Market: Tata Motors Introduces the 2023 Nexon
In recent news, the country's largest electric vehicle manufacturer has introduced the 2023 version of the Nexon, a compact sports utility vehicle, in three different options petrol, diesel, and electric. This move aims to strengthen the company's presence in the highly competitive compact SUV market.
The starting prices for the petrol and diesel versions are ₹8.09 lakh and ₹10.99 lakh, respectively. For the electric variants, the mid-range option will be available from ₹14.7 lakh, while the long-range version will start at ₹18.19 lakh.
When it becomes commercially available, the new Nexon will face competition from cars like the Hyundai Venue, Kia Sonet, Maruti Suzuki Brezza, and Mahindra XUV300 in the petrol and diesel segment. In the electric vehicle segment, it will compete against the Mahindra XUV400. The new variants come with a significant technology upgrade as the model now offers six airbags as standard.
Price Hike Strategy: Tata Motors' Third Increase in 2023
Tata Motors has just announced that they will be increasing the prices of their commercial vehicles by up to 3%. This is the third time this year that they've raised prices in order to cover the extra costs they've had to deal with. The new prices will take effect from October 1st. In the past, they increased prices by 1.2% in January and by 5% in March to make sure their vehicles meet the new emission standards.
Investing in Electric Vehicles: Tata Motors' Ambitious Plans
Tata Motors is doing two important things in India to become better at selling electric cars. They are building special stores just for electric cars, so people can buy and service them easily. This will help them do well in the growing electric car market. They are also figuring out how to sell electric cars in other countries, but they haven't said which ones yet. Tata Motors plans to allocate approximately $2 billion to make electric cars by 2027.
Strong Performance and Expansion
Tata Motor sold 4,613 electric cars in India last month, which include models like Tigor, Nexon, and Tiago EV. This is a 65% increase compared to the previous year. To support its electric vehicle production in India, the company is building a battery factory in Gujarat. This factory is expected to produce a large amount of batteries, with a capacity of 20 gigawatt hours.
In the first quarter ended June 2023, Tata Motors reported a consolidated net profit of ₹3,202.80 crore, driven by robust sales of its luxury car unit Jaguar and Land Rover (JLR). Consolidated revenue for the quarter increased by 42.5% year-on-year to ₹101,528 crore.
The automaker's consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) surged more than fivefold year-on-year to ₹13,218 crore. Operating margin expanded by a significant 860 basis points year-on-year to 13%, compared to 4.4% in the year-ago period.
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