Tata Motors share price gained 3 percent in the morning session on September 22, a day after the automaker said it would hike the price of its commercial vehicles by around 2 percent from October 1 to offset the impact of rising input costs.
The effective price hike will be implemented based on the model and the variant of the vehicle, the auto major said in a statement.
The continued rise in the cost of commodities such as steel and precious metals necessitates the company to pass on a part of it through an increase in the price of the products, it said.
India’s largest carmaker Maruti Suzuki, too, recently hiked prices of its vehicles.
Tata Motors said it had strived to minimise the increase in the price by absorbing a certain portion of the cost at various levels of manufacturing. In the last year, there has been a gradual increase in the prices of various essential commodities like steel and precious metals.
The stock was trading at Rs 310, up Rs 8.15, or 2.70 percent. It touched an intraday high of Rs 313.70 and an intraday low of Rs 303.05.
Tata Motors said its domestic wholesales increased by 53 percent to 54,190 units in August compared to the year-ago period. The company had sold 35,420 units in August 2020. The auto major said its passenger vehicle sales in the domestic market stood at 28,018 units in August, up 51 percent as compared to 18,583 units in August 2020.
Commercial vehicle sales in the domestic market stood at 29,781 units, up 66 percent from 17,889 units in August 2020, it added.Internet Explorer Channel Network