Announces price hike across CV segmentTATAMOTORS - 988 Change: 10.95 (1.12 %)
News: Tata Motors in a regulatory filing has informed exchanges that it will increase the price of its commercial vehicle (CV) fleet by up to 3% with effect from 1st January 2024.
Views: The company cited price hike in response to past hiked input costs. We believe steel prices to be major dampener resulting in price hike across the automobile value chain. With clear cut ambition of double-digit EBITDA margins and steady volume recovery underway amidst robust infrastructure spending by the government, the given price hike will support company’s margins in the near term and is positive in nature. Given the company’s leadership in the CV space with ~40% market share, we expect other industry players to also announce corresponding price hikes.