Tata Motors, Mahindra and Mahindra shares gain post price hike

Stocks of auto majors Tata Motors and Mahindra and Mahindra rose up to 3 per cent after the companies announced price increases in the range of 1-2 per cent, citing higher input costs.

While Mahindra & Mahindra has raised prices by up to Rs 11,500 (ex-showroom) of passenger, commercial vehicles and tractors, 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 on Tuesday.

Tata Motors shares on Wednesday rose by 2.83 per cent to Rs 536.50 while Mahindra and Mahindra gained 1.13 per cent to Rs 1,275 on the Bombay Stock Exchange.

When contacted, a Tata Motors spokesperson told PTI: "From October to November, the company has raised the prices of commercial vehicles in the range of 1-2 per cent across categories."