Tata Motors saw a major climb by more than 2% on this Monday after Tata Group Company had announced that it secured its biggest order till now for the electric buses by the Delhi Transport Corporation. TML CV which is a subsidiary of Tata has signed the deal with DTC for operation of 1500 electric buses in New Delhi. As a part of this agreement, the company will supply, operate and also maintain 1,500 units of the low floor air conditioned and electric buses. Tata Starbus EV is a product which they have developed indigenously.
Reacting to this update, the shares of Tata rose significantly and market capitalization of Tata also climbed up to a level of Rs 1.28 lakh crore with over 3.5 lakh shares changing hands in first two hours of the trade in comparison to the two-week average volume.
The shares of Tata Motors had been trading near their low of 366.05 but this gave the impetus which it needed in an otherwise shoddy year for the automaker where it has seen a fall of 22% in the year. It dropped 6.6% in the last 6 months.
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This is a stock which has lost close to 10.6% in the month and 6.5% in the week. The chairman of the company said that this indeed is a very historic occasion for the company as they are going to sign a definitive agreement for the largest bus order of the electric buses. He also cited the long relationship that Tata has had with DTC and said that it has been based on trust and cooperation and they will look to strengthen it further.
They aim to provide safe, affordable and sustainable transport with this fleet and that is a great boon for the transport industry of the capital of India.