Tata Motors shares up 1% as firm hikes commercial vehicle prices by 2%

Tata Motors on Monday, March 17, said that it will hike prices of all commercial vehicles by up to 2%, starting April 1, 2025.

“The price increase is to offset the rise in input costs and will vary as per individual model and variant,” the auto major said in an exchange filing on Monday.

The stock settled at ₹660.10 apiece, rising 0.70% on the 50-share index.

Shares of Tata Motors remained under pressure for some time as investors were jittery amid Tesla’s entry into the Indian market. Over a month’s period, the scrip has lost almost 4%. For a six-month period, from September 17, 2024, the stock has declined 32.3%.

Tata Motors’ total commercial vehicle sales witnessed a significant decline of 7% to 32,533 units in February 2025 from 35,085 units reported in the same period last year.

Meanwhile, Tata Motors’ total sales in February tumbled 8.17% to 79,344 units as compared to 79,344 units in the same month last year.

The domestic sales of the company dropped 9% to 77,232 units in February 2025 as against 84,834 units sold in February 2024.

Further, as compared with 16,227 units in February 2024, its domestic sales of medium and heavy intermediate commercial vehicles (MH & ICV) stood at 5,940 units in February 2025. The total MH&ICV sales for domestic & international business in February 2025 stood at 16,693 units, up 0.81% compared to 16,663 units in February 2024.

Last week, the carmaker said it marked its return to Sri Lanka and announced the launch of its all-new range of passenger vehicles, including electric vehicles, in the country.

Tata Motors posted a 22% year-on-year (YoY) decline in its consolidated net profit to ₹5,451 crore due to weaker margins and muted Jaguar Land Rover (JLR) volumes. Its net profit stood at ₹7,025 crore in the year-ago quarter. The net profit increased by 63% when compared to the ₹3,343 crore reported in Q2 FY25.

The automaker’s revenue from operations for the reporting quarter increased marginally to ₹113,575, up 2.7% as against ₹109,799 crore reported in the previous fiscal.

The revenue of the commercial vehicle (CV) segment of the automaker was down by 8.4% YoY, standing at ₹18,431 crore. EBITDA margins of the segment increased to 12.4%, up 130 basis points YoY.

Tata Motors' passenger vehicle segment recorded a decline of 4.3% in revenue to ₹12,354 crore. However, its EBITDA margin improved to 7.8%, growing by 120 basis points.