Tata Motors Will Increase Price Of All Best Selling Cars: Nexon, Tiago, Harrier, Safari
Reportedly, countries biggest automaker, Tata Motor’s share saw a jump of over 3 percent in the morning session on July 29.
How Did This Happen?
The jump is caused by the reports that the automaker was planning to hike passenger vehicle prices from next week.
Earlier this month, many reports are circulating about the auto major, as it is looking to increase prices of its entire range of passenger vehicles from next week.
The move is said to offset the steep rise in procurement cost of essential materials like steel and precious metals, as informed by a top company official.
As we know that this Mumbai-based auto major is in the business of a range of passenger vehicles like Tiago, Nexon, Harrier and Safari in India’s domestic market.
Increase In Steel And Precious Metals Prices
While justifying this hike, the Tata Motors President Passenger Vehicles Business Unit (PVBU), Shailesh Chandra said, “We have seen a very steep increase in the prices of steel and precious metals over the last one year. The financial impact of the increase in commodity prices is in the range of 8-8.5 percent of our revenues in the past one year,”.
Further, Chandra added, “From the company realization perspective, we have passed on only 2.5 percent. From an ex-showroom perspective, this would be around 3 percent, so there is a big gap to the extent of increase that has happened (in the input costs) and what we have been able to pass on to the market,”.
Following these reports, the companies stock was trading at Rs 293.25 at 9.52 am, which is up to Rs 8.80, or 3.09 percent.
Also, it has touched an intraday high of Rs 293.90 and an intraday low of Rs 287.65.
On July 26, Tata Motors posted a consolidated net loss of Rs 4,450.92 crore for Q1 FY22, against a net loss of Rs 8,437.99 crore in the corresponding quarter of the previous financial year.
While the consolidated revenue for the quarter is more than doubled to Rs 66,406.45 crore from Rs 31,983.06 crore in the year-ago period.
This indicates that the Indian operations of Tata Motors showed significant improvement as compared to Q1 FY21.
The auto major said that the effects of the second COVID wave along with the supply issues slowed down the growth momentum compared to Q4 FY21.