Shares of Tata Motors rose 4 per cent to hit an intraday high of Rs 484.95 on the BSE after the company announced that it will increase the price of its commercial vehicles (CV) range from January 1, 2022.
An increase in the range of 2.5 per cent will be implemented across segments – M&HCV, I&LCV, SCV and bus, basis individual model and variant of the vehicle, the automaker said in a statement.
The stock ended 3.12 per cent higher at Rs 481.90 against the previous close of Rs 467.30. Market cap of the firm rose to Rs 1,60,005.63 crore. The shares stand higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.
The large-cap stock has gained 162.5 per cent in the last one year and has risen 162 per cent since the beginning of this year.
Tata Motors said that the hike in the prices of its CV range is due to the increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials.
“While the company is absorbing a significant portion of the increased costs at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimal price hike,” Tata Motors further stated.
“We expect a sustained uptick in CV volumes in the coming quarters as economic activities gain pace and financing issues/cash-flow constraints are ironed out. We maintain our relatively cautious stance on Maruti, Hero MotoCorp, Eicher and Tata Motors,” Nirmal Bang said in its automobile sales monthly report.
In the passenger vehicle category, the company’s internal combustion engine vehicle sales stood at 28,027 units in November 2021 vs 21,228 units in November 2020. It’s a growth of 32 per cent year-on-year (YoY). In the electric vehicle segment, Tata Motor’s domestic sales grew a whopping 324 per cent YoY to 1,751 units as compared to 413 units in November 2020.
In the CV category, Tata Motors saw a 15 per cent jump in sales at 32,245 units in November 2021 as compared to 27,982 units in November 2020.
Tata Motors reported a consolidated net loss of Rs 4,441.57 crore for the quarter ended September 2021 as against a net loss of Rs 314.45 crore in the year-ago quarter.
The company’s net revenue rose 14.7 per cent to Rs 61,379 crore during the quarter.