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Tata Motors rises on hike in utility vehicle prices

The company has increased the prices of its utility vehicle portfolio, comprising Sumo, Safari and Aria, by up to Rs 35,000 following the excise duty hike in the Budget.

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SI Reporter Mumbai
Last Updated : Mar 05 2013 | 12:59 PM IST
Tata Motors is trading higher by 3% to Rs 297 on reports that the company has increased the prices of its utility vehicle portfolio, comprising Sumo, Safari and Aria, by up to Rs 35,000 following the excise duty hike in the Budget.

“The increase in the prices by the company is on the expected lines and has been undertaken to protect the margins,” an analyst at Angel Broking said in its report.

The analyst does not see any major impact of the price hikes/cuts on the company’s consolidated financials; however, the price cuts will impact the standalone performance which is already struggling, he added.

Meanwhile, the company has slashed the prices of its Indica and Manza range of passenger cars by up to Rs 50,000 in order to prevent falling sales in recent months.

 “The prices have been cut in the range of Rs 29,000 to Rs 50,000 with immediate effect to boost the consumer sentiments and make the company’s products more attractive for the consumers,” the Reuters report suggests.

The stock opened at Rs 291 and hit a high of Rs 299 on NSE. A combined 3.97 million shares have changed hands on the counter till 1008 house on NSE and BSE.
 

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First Published: Mar 05 2013 | 10:10 AM IST

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