Shares of automaker Tata Motors surged as much as two percent on Tuesday after the company announced a price hike across its commercial vehicle segment.
"Tata Motors, India’s largest commercial vehicle manufacturer, has announced an impending price hike of its commercial vehicle range. An increase in price in the range of 2.5 percent, will be implemented from 1st January 2022 and will be put into effect across segments – M&HCV, I&LCV, SCV and Bus, basis individual model and variant of the vehicle," the automaker said in a press release.
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Tata Motors said that the increase in prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs
of other raw materials has prompted the vehicle manufacturer to undertake this price hike in commercial vehicles.
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 through a minimal price hike, the company added.
This price hike comes at a time when several automakers have either announced price hikes or are considering raising prices of vehicles, in an attempt to offset higher raw material costs.
The only bright spark in the November auto sales data was commercial vehicles. Other than that most sectors have reported disappointment in the month of November.
Also Read | India great long-term growth story; cyclically better positioned than most Asian markets: Credit Suisse
Tata Motors total sales went up 25 percent year-on-year (YoY) while commercial vehicle sales rose 15 percent YoY.
At 9:19 am, shares of the company were 1.7 percent higher at Rs 475.3 on BSE.
Year-To-Date, the stock has gained over 154 percent whereas Nifty50 has risen merely 21 percent.
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