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Tata Motors raises prices on passenger vehicles including EVs due to input costs

EditorAhmed Abdulazez Abdulkadir
Published 01/21/2024, 05:39 AM
© Reuters

MUMBAI - Tata Motors (NYSE:TTM), one of India's leading automotive manufacturers, has announced a price hike across its entire passenger vehicle range, including popular electric vehicle (EV) models such as Punch, Nexon, Tiago, Tigor, and Harrier. The revision is set at an average increase of 0.7%. The company cited rising input costs as the primary reason for this adjustment.

The new pricing is slated to take effect from February 1, reflecting a response to the economic pressures of increased costs in materials and components necessary for vehicle production. This move mirrors the broader industry trend where manufacturers are adjusting prices to manage profitability in the face of cost inflation.

Consumers planning to purchase Tata Motors' vehicles can expect to see the revised prices implemented across the entire range of passenger cars, including the increasingly popular electric models, starting next month.

This announcement follows a period of positive growth for Tata Motors. In December, the company reported a 4% overall sales increase and a 9% rise in passenger vehicle sales year-over-year. Amidst this positive momentum, Tata Motors has also introduced the Punch EV to its lineup. The Punch EV, priced at Rs 10.99 lakh ($1 = ₹83.12), boasts an ARAI-certified range and further strengthens Tata's position in the burgeoning Indian EV market.

InvestingPro Insights

As Tata Motors navigates through the challenges of rising input costs with its recent price hike announcement, current and potential investors might find the following insights from InvestingPro valuable. According to the real-time data and analysis available on InvestingPro:

  • Net income for Tata Motors is expected to grow this year, which could be a positive sign for investors looking for growth in the automotive sector.
  • The stock's valuation implies a strong free cash flow yield, suggesting that the company is generating a healthy amount of cash relative to its share price.
  • Despite the price increase for consumers, Tata Motors operates with a moderate level of debt, which might provide some reassurance to investors concerned about financial stability.

In addition to these metrics, there are 15 additional InvestingPro Tips available for Tata Motors, including insights on stock price volatility, industry positioning, and analysts' profitability predictions. For those interested in a deeper dive into these metrics and more, an InvestingPro subscription is currently on a special New Year sale with a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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