Tata Motors share price jumped over 3 percent in the morning session on July 29 following reports that the automaker was planning to hike passenger vehicle prices from next week.
The auto major is looking to increase prices of its entire range of passenger vehicles from next week to offset the steep rise in procurement cost of essential materials like steel and precious metals, a top company official has said.
The Mumbai-based auto major sells a range of passenger vehicles like Tiago, Nexon, Harrier and Safari in the domestic market.
"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," Tata Motors President Passenger Vehicles Business Unit (PVBU)Shailesh Chandra told PTI.
"From the company realisation 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," Chandra said.
At 9.52 am, the stock was trading at Rs 293.25, up Rs 8.80, or 3.09 percent. It has touched an intraday high of Rs 293.90 and an intraday low of Rs 287.65.
The auto major on July 26 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.
Consolidated revenue for the quarter more than doubled to Rs 66,406.45 crore from Rs 31,983.06 crore in the year-ago period.India operations of Tata Motors showed significant improvement as compared to Q1 FY21, however the second COVID wave along with the supply issues slowed down the growth momentum as compared to Q4 FY21, the company said.