Tata Motors Ltd. has announced that it will increase the price of its commercial vehicles effective April 1 by up to 2%.
“The price increase is to offset the residual impact of the past input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles,” the company said in a statement.
Moody’s Investors Service had on Wednesday affirmed Tata Motors Limited’s Ba3 corporate family rating. Concurrently, Moody’s has affirmed TML’s Ba3 senior unsecured instrument ratings. Moody’s has also maintained the positive outlook on all ratings.
The rating affirmation follows TML’s announcement earlier this week that its board of directors have agreed in- principle, the demerger of its operations into two separate listed companies for commercial vehicles (CVs) and passenger vehicles (PVs), respectively, subject to shareholder and regulatory approvals. The demerger will likely be completed within the next 12-15 months.
“While the demerger would result in Tata Motots remaining operations comprising only CVs, the company’s stronghold with about 40% share in India’s growing CV industry and the business’ demonstrated ability in generating large free cash flow through industry cycles will support its credit profile,” said Kaustubh Chaubal a Moody’s Senior Vice President.
