Tata Motors Ltd shares zoomed over 7% in intra-day trade on Wednesday, i.e. 4 December, after the company announced that it will be raising the prices of its passenger vehicles from January 2020.
At 2:25 pm, shares of Tata Motors were trading at Rs 168 apiece, up 6.2%, after hitting the day’s high of Rs 169.60. The stock has fallen 4.7% in the last one year compared with an 11% rise in the benchmark Nifty 50 index.
Tata Motors said the price hike will help the company offset the impact of upgrading its portfolio to conform to BSVI emission norms. “With BSVI products coming in, prices will increase from January,” Tata Motors president Mayank Pareek was quoted as saying by PTI.
However, Pareek did not give details on the quantum of the price hike. He just mentioned that the hike next month would be on the higher side compared with the earlier price revisions taken by the company.
“We are working on the calculations…normally if any change happens, the prices go up by Rs 10,000-15,000. Now there are two things happening, one is BSVI and there is also pressure from rise in commodity prices,” Pareek told PTI.
Interestingly, earlier this week, India’s largest passenger car maker Maruti Suzuki India Ltd had also announced that it would hike prices across its vehicle range with effect from January 2020.
“…Over the past year, the cost of company’s vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020,” Maruti had said in a notification to stock exchanges.
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Source: News18