Tata Motors to Hike Car, SUV and EV Prices by Up to Rs 25,000 from September 1
Tata Motors Passenger Vehicles (TMPV) is set to increase the prices of its cars and SUVs by up to Rs 25,000 from September 1, as the automaker looks to offset rising input costs and continued inflationary pressures.
The price hike will vary across models and variants and will apply to Tata Motors’ petrol, diesel and electric vehicle range. This will be the company’s third passenger vehicle price revision in 2026.
Rising Costs Prompt Latest Price Revision
Tata Motors said it has absorbed a significant portion of the rising costs so far but will now pass on part of the burden to customers through the latest price revision.
Earlier this year, the company increased prices across its Internal Combustion Engine (ICE) portfolio by an average of 0.5% from April 1. This was followed by another hike of up to 1.5% from July 1, which covered both ICE and electric vehicles.
The September revision will also mark the second consecutive price increase for Tata Motors’ electric vehicle portfolio.
Commodity Inflation Continues to Put Pressure on Tata Motors
The latest price hike comes amid persistent pressure from rising commodity costs. Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles, said commodity inflation had an impact equivalent to around 4.5% of revenue in the company’s domestic passenger vehicle business during the June quarter.
Chandra has indicated that cost pressures could remain elevated during the September quarter, with commodity prices expected to add further pressure following the impact seen in the first quarter.
Electric Vehicles Face Additional Cost Challenges
Tata Motors’ EV portfolio is also facing increasing cost pressures, particularly due to higher battery-related expenses. Cell prices are estimated to have risen by around 10% sequentially, making the cost environment more challenging for electric vehicles compared with conventional petrol and diesel models.
The company is relying on a combination of cost-cutting measures and phased price increases to manage the impact instead of passing the entire cost burden on to customers at once.
Meanwhile, brokerage firm Motilal Oswal Financial Services estimates that Tata Motors’ passenger vehicle business could still face a residual commodity-cost impact of around 3% in the September quarter, despite the company’s efforts to control costs and adjust vehicle prices.
With the latest increase taking effect from September 1, prospective buyers may see higher prices across Tata Motors’ popular car, SUV and EV lineup. ALSO READ: E20 Petrol Concerns Grow: Why CEA Wants E10 Back at Fuel Pumps
