Shares of Tata Motors gained 3 per cent to Rs 355.50 on the BSE in the intra-day trade on Tuesday on report that the company would undertake a price increase in its passenger vehicles (PV) portfolio to pass on some of the increase in input costs of materials, such as steel and precious metals, to customers.
The quantum of the hike, however, has not yet been disclosed. The stock of the Tata Group commercial vehicles’ company was trading close to its 52-week high of Rs 360.65 touched on June 15, 2021.
The passenger vehicle (PV) industry’s sequential growth momentum got adversely impacted in Q1FY22 owing to restrictions imposed across the country to break‐the‐chain of Covid transmission. Yet, the industry is likely to record strong growth numbers off a low base on a year on year basis.
“The PV industry continues to witness uncertainty on account of global semi‐conductor shortage and rising commodity prices even as the demand side is on a progressive recovery path,” Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors had said on July 1 while announcing June quarter sales numbers.
The company reported a strong recovery in FY21 with highest ever revenue in the PV segment in the last 8 years, while the commercial vehicle (CV) segment was back to pre-Covid levels. The margins also improved significantly with reduction in certain fixed costs. Going ahead, the company hopes to…