Mumbai: Shares of Tata Motors closed with gains of 1.71 percent a day after the homegrown automaker announced a price increase of 1-2 percent across its various models.
Another auto major Mahindra & Mahindra, which also raised prices of its various models, rose by 1.13 percent in day trade but closed down by 0.59 percent at Rs 1,253.20 due to profit booking.
Shares of Tata Motors ended 1.71 percent higher at Rs 530.60 on the BSE. During the day, the stock had surged 2.83 percent 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 percent.
"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 percent across categories," Tata Motors said.
