Shares of Tata Motors closed with gains of 1.71 per cent a day after the homegrown automaker announced a price increase of 1-2 per cent across its various models.
Another auto major Mahindra & Mahindra, which also raised prices of its various models, rose by 1.13 per cent in day trade but closed down by 0.59 per cent at Rs 1,253.20 due to profit booking.
Shares of Tata Motors ended 1.71 per cent higher at Rs 530.60 on the BSE. During the day, the stock had surged 2.83 per cent to Rs 536.50.
Mahindra & Mahindra has raised prices by up to Rs 11,500 (ex-showroom) of passenger, commercial vehicles and tractors, while Tata Motors has hiked prices of its commercial vehicles in the range of 1-2 per cent.
"We have been holding back on the price hikes for a while but now it has been necessitated to partly offset the impact of rising input costs," Mahindra & Mahindra Chief Executive, Automotive Division and International Operations, Pravin Shah said in a statement yesterday.
"From October to November, the company has raised the prices of commercial vehicles in the range of 1-2 per cent across categories," Tata Motors said.
