Tata Motors share rose 4% today after the auto firm said it would raise the price of its commercial vehicles by around 2 per cent from October 1 to offset the effect of rising input costs.
Tata Motors share hit an intraday high of Rs 313.7, rising 3.93% against previous close of Rs 301.87 on BSE. Tata Motors share is trading higher than 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages.
Tata Motors share has gained 131.93% in one year and risen 68.05% since the beginning of this year.
Market cap of the auto firm rose to Rs 1.02 lakh crore on BSE. Total 9.14 lakh shares of the firm changed hands amounting to turnover of Rs 28.33 crore on BSE.
The effective price hike will be implemented based on the model and the variant of the vehicle, the auto major said.
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.
On September 6, India’s largest carmaker Maruti Suzuki, too, hiked prices of its vehicles by 1.9 per cent on an average across models. Earlier, the company had raised car prices in April and January. In April, the price hike was of 1.6 per cent ex-showroom across models, while in January there was an increase in select models of Rs 34,000.
Tata Motors said it had strived to minimise the rise 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.
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.
