Tata Motors announced on Tuesday an increase in its commercial vehicles with effect from October 1. Shares of the automaker recovered more than half of their intraday losses after the announcement.
The actual price increase will be in the order of 2% and will be implemented on a model and variant basis, Tata Motors said in a regulatory filing.
The company cited an increase in the cost of raw materials such as steel and precious metals as the reason for its move. The continued increase in costs is forcing the company to pass some of that on to the rise in the price of its products, he said.
Tata Motors also said it is continuing its efforts to provide the lowest total cost of ownership for its customers and fleet owners.