The country's largest maker of commercial vehicles, Tata Motors, on Tuesday said that it will increase price of its commercial vehicles from October 1 in the range of 2 per cent and it will be implemented basis the model and the variant of the vehicle. The company hiked the price of commercial vehicles on the back of jump in metal prices.
The continued rise in the cost of commodities, such as steel and precious metals, necessitates the company to pass on a part of it through increase in price of the products, Tata Motors said in a press release.
The company has further strived to minimise the increase in the price by absorbing a certain portion of the cost at various levels of manufacturing. Further, Tata Motors continues the efforts to deliver the lowest total cost of ownership for its customers and fleet owners, Tata Motors added.
Tata Motors shares were trading lower after the company announced price hikes. Tata Motors stock was down 1 per cent at Rs 296, underperforming the Sensex which was down 0.2 per cent.
Tata Motors shares have so far this year jumped 109 per cent massively outperforming the Nifty which has gained 25 per cent.