Tata Motors shares were on the rise early Wednesday after the company informed that it will increase the prices of its commercial offerings by 5% from April 1.
What Happened? According to a press release issued by the automobile maker, the hike has been notably announced ahead of a transition to the BS 6 phase II new emission norms.
The increase in price will apply to the company’s entire portfolio of commercial vehicles, the company has confirmed.
"The decision to increase prices is a result of the company's efforts to comply with the more stringent BS-6 phase II emission norms," the company said in a statement.
"As Tata Motors transitions its entire vehicle portfolio to meet these standards, customers and fleet owners can expect a range of cleaner, greener, and technologically superior offerings that deliver higher benefits and lower total cost of ownership," added the country’s largest automobile maker.
Get all the latest Share Market trends and news to set you up for the week ahead.
In February, Tata Motors posted a 4% year-on-year rise in commercial vehicle (CV) sales in the domestic market. But, its international shipments dipped by 61%, dragging overall CV sales numbers by 3%.
After the third quarter results, an HDFC Securities report highlighted that the India CV business has posted a strong 340 basis points quarter-on-quarter margin expansion for Tata Motors to 8.4% on the back of softening input costs and reduced discounts.
The analysts further noted that the automaker’s management expects input costs to rise again from the first quarter of 2023-24 and that they have notably begun reducing discounts from September.
Price Action: Tata Motors shares were trading 0.74% higher at ₹415.45 shortly after markets opened for trading on Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.