Tata Motors share price slips nearly 4% on passenger vehicle prices hike

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Rising input costs and material costs of steel, precious metals and semiconductors have compelled the company to pass on a part of the cost to customers, company said.

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Tata Motors share price slipped nearly 4 percent intraday on January 25 after the company increases passenger vehicle prices effective January 22.

The company has announced that it will hike prices of its passenger vehicle range.

Rising input costs and material costs of steel, precious metals and semiconductors have compelled the company to pass on a part of the cost to customers, the company said in the release.

Tata Motors has marginally increased prices from 0 to Rs 26,000, depending on the variant. Continuing its commitment towards customers, the company will also offer protection from the price increase to customers who have booked Tata passenger vehicles on or before 21st January.

Tata Motors PV Business has been witnessing strong demand for its ‘New Forever’ range of Cars & SUVs and grew by 39% in FY21 over FY20.

In Q3FY21, Tata Motors also registered the highest ever sales in the last 33 quarters and continues to work on debottlenecking the supply chain and ramp up its output to meet the increased demand, it added.

A meeting of board of directors of the company is scheduled to be held on January 29, 2021, to consider and approve the audited financial results (Standalone) and unaudited consolidated financial results (with Limited Review) for the quarter ended December 31, 2020.

At 11:43 hrs Tata Motors was quoting at Rs 282.35, down Rs 7, or 2.42 percent on the BSE.

tata motors

The share touched its 52-week high Rs 306.90 and 52-week low Rs 63.60 on 22 January, 2021 and 24 March, 2020, respectively.

Currently, it is trading 8 percent below its 52-week high and 343.95 percent above its 52-week low.