Tata Motors, in an exchange filing released in the post-market hours of Monday, announced that the price hike will be effective from April 1 this year and will vary depending on the model and variant. This comes after Tata Motors Passenger Vehicles (TMPVL) in February announced plans to increase vehicle prices due to continued pressure from rising commodity prices.
“Yes, we have been facing pressure on the commodity side for nearly a year now. Still we see pressure on the precious metal side, copper and so on. Overall, if you see the impact of commodity price increase, it has been for us about 2% plus of our revenues,” said TMPVL’s Managing Director and CEO Shailesh Chandra during a quarterly earnings call.
Several automakers, including Audi and Hyundai, have already announced price hikes, while India’s largest carmaker Maruti Suzuki is mulling the possibility of revising prices as input costs rise.
German luxury automaker Audi has announced a hike in car prices by up to 2% from April 1 this year to partially offset escalating input costs and the adverse impact of currency fluctuations.
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Tata Motors share price:
Shares of Tata Motors’ commercial vehicle business were listed at Rs 335 apiece on the NSE on November 12 last year, after completing the demerger from its passenger vehicle business. The shares of the company have so far gained around 30% since then.Shares of the passenger vehicle segment were discovered at a price of Rs 400 apiece on the NSE on October 14. The shares of this segment, however, have fallen more than 21% since listing post demerger.