Tata Motors will hike prices across its passenger vehicles portfolio from February 1, 2023, as the carmaker looks to pass on the rising input costs to customers.
The price hike will be applicable only on Tata Motors' internal combustion engine (ICE) passenger vehicles.
The weighted average increase will be 1.2%, depending on the variant and model, the automaker says in a statement.
"The company has been absorbing a significant portion of the increased costs on account of regulatory changes & rise in overall input costs and is hence passing on some portion through this hike," the statement says.
The price hike comes days after Tata Motors reduced prices of its Nexon EV range to maintain its leadership position in the electric vehicle segment amid new launches by rivals, including Mahindra & Mahindra.
The automaker clocked a net profit of ₹2,957.71 crore for the quarter ended December 31, 2022, as against a loss of ₹1,516.14 crore in the corresponding period of last fiscal.
Revenue from operations stood at ₹88,488.59 crore during the third quarter, up 22.5% year-on-year compared with ₹72,229.29 crore in the same quarter last fiscal, according to its stock exchange filing.
Tata Motors' passenger vehicle revenue rose 37% year-on-year to around ₹11,700 crore, reflecting higher volumes and realisations. EBITDA margins were 6.9% (up 370 bps) and EBIT margins were at 1.5% (up 510 bps), driven by improved volumes and mix, higher realisations, softening commodities and certain one offs, the filing said.
Passenger vehicle wholesales grew 33% year-on-year, driven by strong demand for Nexon, Nexon EV, Punch, Tiago and Tigor CNG, says the carmaker. The company has also commenced deliveries of Tiago.ev in January 2023.
"Wholesales of 131,297 units recorded in Q3 FY23 (+32.6% vs Q3 FY22) resulted in the business comfortably crossing the distinctive landmark of 500,000 annual units to post wholesale of 526,798 units in CY22. EVs too posted their highest ever sales in Q3 FY23 at 12,596 units (+ 116.2% vs Q3 FY22) and crossed the cumulative sales milestone of 50,000 units. Going forward, we remain vigilant about the evolving demand and supply situation and will stay nimble to take necessary actions swiftly whilst focusing on improving profitability further," said Shailesh Chandra, Managing Director Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd.
On commercial vehicles, Tata Motors said the CV industry is poised for growth on the back of increased infrastructure activity, demand for last mile mobility and strong recovery in bus segment. "Going forward, we expect a good replacement demand, especially in MHCVs in Q4 FY23, as we also maintain a close watch on the evolving geopolitical situation, inflation and interest rate risks on both the supply and demand," it said.
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