The prices will be hiked by 2 per cent, it said. “While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles,” the company said in a press release.
The company recently announced that its board approved demerging the company into two units followed by a separate listing to tap into the synergies better.
After the demerger, one company will house the passenger and electric vehicles as well as Jaguar Land Rover businesses, and related investments.
The commercial vehicle business and related investments will be spun into the other entity. Tata Motors is India’s market leader in the commercial vehicles space.
Shares of Tata Motors have risen about 27% in 2024 after more than doubling last year. Post the split, shareholders will continue to have an identical shareholding in both the listed entities, the company said.Rating agency Moody’s recently affirmed Tata Motors’ Ba3 corporate family rating while maintaining a positive outlook on all ratings. “While the demerger would result in TML’s remaining operations comprising only CVs, the company’s strong foothold with about 40 per cent share in India’s growing CV industry and the business’ demonstrated ability in generating large free cash flow through industry cycles will support its credit profile.
“With unit sales of less than 0.5 million, revenues of around USD 9 billion and EBITA margin at about 8 per cent, TML’s CV operations will likely generate ample free cash flow with credit metrics substantially strong for a Ba3 CFR (corporate family rating),” said Moody’s Senior Vice President Kaustubh Chaubal.