Tata Motors earned Rs 2,143 crore by increasing the prices of vehicles, how - Newztezz Online


Tuesday, September 19, 2023

Tata Motors earned Rs 2,143 crore by increasing the prices of vehicles, how

Due to increase in input costs, Tata Motors has increased the price of commercial vehicles by 3 percent for the third consecutive time. The new prices are said to be effective from October. After which an increase in the shares of the company has also been seen.

Tata Motors has announced a 3 percent increase in the price of commercial vehicles. After which the company's shares closed with more than one percent on Monday, however, during the trading session, the company's shares saw a rise of more than one and a half percent. On Monday, an increase of Rs 2,143 crore was seen in the market cap of the company. The decision taken by the company will come into effect from October. Let us also tell you what kind of decision has been taken by Tata Motors and how its effect has been seen in the company's shares.

Increase in the share of commercial vehicles

According to Reuters report, Tata Motors announced on Monday that it will increase the prices of its commercial vehicles by up to 3 percent. The company has increased the prices for the third time this year. This increase is being done due to increase in input cost. The price increase will be effective from October 1. The Indian automaker said that the increased prices will be applicable to its commercial vehicle series. Earlier in the day, rating agency Fitch had said India's commercial vehicle sales volumes will slow to low to mid-single digits due to rising ownership costs.

How many EVs were sold in the last month?

Tata intends to allocate approximately $2 billion for the development of battery-powered models by 2027. The company sold 4,613 electric passenger vehicles in India last month, including Tigor, Nexon and Tiago EV models. Which is more than 65 percent compared to last year. The automaker is strengthening its domestic electric vehicle supply chain with the construction of a battery factory in the western state of Gujarat, which is expected to have a production capacity of 20-gigawatt hours.

Increase in company's market cap

On the other hand, an increase was seen in the company's shares on Monday. According to Bombay Stock Exchange data, Tata Motors closed at Rs 640.60 with a rise of one percent. However, during the trading session the company's shares had also reached Rs 644.10. If we talk about the market cap of the company, then after the market closed yesterday, it closed at Rs 2,12,827.63 crore with an increase of Rs 2,143 crore.

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