Auto major Tata Motors announced a hike in the prices of its passenger vehicles on Tuesday. The average increase of 0.9 percent, depending on the variant and model, will be implemented from January 19 onwards, the company said in a statement.
“While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this minimal price hike,” the automaker said.
Tata Motors has also taken a reduction of upto Rs 10,000 on specific variants following feedback from customers.
The firm, however, clarified there will be no impact of the price hike on bookings made on or before January 18.
Investors seem to have reacted positively to the announcement. Tata Motors shares, which were trading in the red, leaped into the green territory following the development. At 12:05 pm, the Tata Motors stock was up 0.20 percent at Rs 526.05 on the BSE and it was trading 0.12 percent higher at Rs 525.65 on the NSE.
Earlier in December 2021, the carmaker had announced an impending price hike of 2.5 percent in its commercial vehicle range, effective January 1, 2022.
The company had cited an increase in prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials as reasons for the hike.
The homegrown automaker witnessed strong sales on December 2021 as it reported a 50 percent jump in
total passenger vehicle sales to 35,299 units during the month. The Pune-based company had sold a total of 23,545 units in the same month a year ago.
The company saw the highest quarterly and monthly sales in a decade in passenger vehicle space.
(Edited by : Kanishka Sarkar)
First Published: Jan 18, 2022 11:59 AM IST
