Tata Motors to hike prices in CV segment from July 1TATAMOTORS - 614 Change: -6.85 (-1.10 %)
News: In a regulatory exchange filing, Tata Motors (TML) informed exchanges about a price hike to the tune of 1.5-2.5% to be taken in the CV space from July 1, 2022 primarily to mitigate rising input cost.
Views: Tata Motors becomes the second OEM to announce a price hike in the recent past with Hero MotoCorp in the 2-W space being the first. TML reported 330 bps margin expansion in the CV space in Q4FY22 (at 5.9%) primarily indicating large part of raw material costs have already been passed on to customers with current price to further support EBITDA margins in the near term. Moreover, with domestic steel prices down 20% from their peak and even global aluminium prices down >25% from their peak, the sector is in a sweet spot in reaping the gains of lower RM costs, going ahead.