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.
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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.
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