Tata Motors slumps on price hike
Tata Motors continues to remain in the red. In the opening bell session, the stock price slipped 2% to Rs.171.70 and even now remains around Rs.172 levels.
With demand already being on the low, the market is obviously worried that a price hike now would hamper growth. The company announced that it is hiking prices of its passenger vehicles range by up to Rs. 25,000 starting 1st April 2019.
The company said in a statement on Saturday that the prices will be hiked due to rising input costs and external economic conditions.
According to Mayank Pareek, president, passenger vehicle business unit, Tata Motors: "The changing market conditions, rising input costs and various external economic factors have compelled us to consider this price increase."
In another news, which was actually good, Tata Motors has own the JLR case against Evoque copy case in the Chinese courts. The court concluded that Evoque has five features copied directly in ‘Landwind X7’ built by Jiangling Motor Corp, which had led to widespread consumer confusion.
Jiangling Landwind X7 SUV had a similar shape to that of JLR Evoque SUV, with the roof and windows tapering from front to back. The X7 also had near-identical tail lights and character lines on the side panelling.
This is a very significant win as earlier too, the likes of GM, BMW, Toyota, Merc, all have taken Chinese manufacturers to court for being copy cats but this is the first time ever that the Chinese Courts have actually admitted to the copy, with a foreign company wining the case.