Tata Motors’ share price gained nearly 3 percent on March 22 after the vehicle maker announced a hike in the price of its commercial vehicles from April 1.
The stock closed at Rs 440.30 on the BSE, rising 2.89 percent but is still 18 percent away from its 52-week high.
“An increase in price in the range of 2-2.5 percent will come into effect from 1st April 2022 across the range, depending upon individual model and variant,” India’s largest commercial vehicle manufacturer said in an exchange filing on March 22.
Tata Motors’ decision follows a significant spike in prices of industrial metals, including steel and aluminium, used in making commercial vehicles. This is the first price hike by the company in 2022.
“The increase in the prices of commodities such as steel, aluminium, and other precious metals, in addition to higher costs of other raw materials, has incited this price hike of commercial vehicles,” the company said.
While the company has initiated actions to absorb 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 minimized price hike, it said.