Tata Motors gains on move to hike commercial vehicle prices up to 3%
Tata Motors Limited saw its shares trading 0.5 percent higher at Rs 643 in the early hours of September 20, 2023. This marked the third consecutive session of gains for the company’s stock following the announcement that it would implement a price increase of up to 3 percent on its commercial vehicles, effective from October 1.
The primary rationale behind this price adjustment, as stated by India’s largest commercial vehicle manufacturer, was to offset the lingering impact of past input cost escalations. Importantly, this price hike would be applicable across the entire spectrum of commercial vehicles offered by Tata Motors.
What stood out was Tata Motors’ stock performance over the preceding six months, where it exhibited remarkable growth, surging by an impressive 56 percent. This growth rate was notably higher than that of other major automobile companies listed on the stock exchanges. Such a significant uptrend in the stock price over a relatively short period likely reflects investor confidence in Tata Motors’ ability to manage cost pressures and maintain profitability amid the backdrop of rising input costs.
However, market observers and stakeholders would be wise to keep a watchful eye on the company’s ongoing performance and the broader market dynamics to assess any potential future impacts on Tata Motors’ stock.
In the month of August, Tata Motors reported a modest year-on-year growth of 1.9 percent, achieving total sales of 32,077 units compared to 31,492 units in the same month the previous year. This sales figure encompasses various vehicle categories.
Specifically, domestic sales of medium and heavy internal combustion vehicles (M&HICV), which include trucks and buses, reached 13,306 units in August. This marked an increase compared to the 12,069 units sold in the same month the previous year. The growth in M&HICV sales is significant as it indicates demand in the commercial vehicle segment, which is a key market for Tata Motors.
In other news, Tata Motors, being the largest electric vehicle manufacturer in the country, introduced the 2023 edition of the Nexon. This updated Nexon is available in multiple versions, including petrol, diesel, and electric.
The move to offer various powertrain options in the Nexon is likely aimed at enhancing Tata Motors’ presence in the highly competitive compact sports utility vehicle (SUV) market. The inclusion of electric variants aligns with the growing demand for electric vehicles in India and globally, reflecting the company’s commitment to sustainable mobility solutions.
The 2023 edition of the Tata Nexon brings a refreshed lineup of models to cater to a wide range of consumer preferences and needs. The petrol versions start at a competitive Rs 8.09 lakh, while the diesel variants are priced from Rs 10.99 lakh, making them attractive options in the compact SUV segment. For those inclined towards electric mobility, the battery-run variants offer environmentally friendly choices, with the mid-range electric version priced at Rs 14.7 lakh and the long-range option at Rs 18.19 lakh. These pricing strategies not only reflect Tata Motors’ commitment to providing a diverse range of vehicles but also make the Nexon accessible to a broader customer base.
In terms of market competition, the new Nexon will be pitted against formidable rivals. In the petrol and diesel segment, it will face off against popular contenders such as the Hyundai Venue, Kia Sonet, Maruti Suzuki Brezza, and Mahindra XUV300. Simultaneously, in the electric vehicle (EV) market, the Nexon will challenge the Mahindra XUV400. The introduction of electric variants underscores Tata Motors’ recognition of the growing demand for eco-friendly transportation solutions, aligning with global trends in sustainable mobility.
One of the standout features of the new Nexon lineup is a significant technology upgrade. Notably, all models now come equipped with six airbags as standard, enhancing safety for occupants. This commitment to safety underscores Tata Motors’ dedication to prioritizing the well-being of its customers and ensuring that their vehicles adhere to modern safety standards. The 2023 Tata Nexon, with its diversified offerings and safety enhancements, is poised to compete effectively in India’s fiercely competitive SUV market.
