Shares of Tata Motors slipped 3% today after the company announced a price increase across its commercial vehicle range, effective Jan.01, 2021.
The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles.
The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions, company said on Tuesday.
The price increase is expected across the portfolio of M&HCV, l&LCV, SCV & Buses. The actual change in price will depend on individual model, variant and fuel type. Tata Motors will continue to offer best in class value in each segment with low total cost of ownership and increasing profit potential for vehicle owners, it added.
Shares of Tata Motors are trading at Rs 160.05, down Rs 4.5, or 2.73% at the Bombay Stock Exchange (BSE) on Tuesday at 1:37 p.m.
The scrip has touched an intra-day high of Rs 169.10 and low of Rs 156.55. The total volume of shares traded at the BSE is 6,206,889.
In the earlier session, the shares fell 8.84%, or Rs 15.95, at Rs 164.55.
Currently, the stock is trading down 16.9% from its 52-week high of Rs 201.80 and above 151.65% over the 52-week low of Rs 63.60.