Tata Motors PV to hike car prices by ₹25,000 from next month
This is the second hike in Tata Motors car prices in the same quarter. The company had increased prices by up to 1.5 per cent, effective from July 1.
- Aug 21, 2026,
- Updated Aug 21, 2026 9:45 AM IST
Tata Motors Passenger Vehicles (TPMV) announced on Friday that it would increase the prices of its vehicles – both internal combustion engine (ICE) and electric vehicles (EV). The extent of the price hike would vary according to variants, it said.
Tata Motors PV said it would increase prices by ₹25,000, and it would be effective from September 1.
MUST READ | Tata Motors Passenger Vehicles: Business outlook, valuation and price targets
“The extent of the price increase will vary across models and variants, ensuring that the overall value proposition of each offering is maintained. This price revision is being undertaken to partially offset the impact of rising input costs and sustained inflationary pressures. While TMPV continues to absorb a significant portion of these increases, a part of the impact is being passed on to customers through this adjustment,” it said in a regulatory filing.
This is the third price hike announced by Tata Motors PV. The company had raised prices across its passenger vehicle portfolio by up to 1.5% from July 1, 2026. Prior to this, the automaker had increased prices across its internal combustion engine (ICE) passenger vehicle portfolio by 0.5% from April 1, 2026.
On August 14, Business Today reported that Tata Motors PV is weighing more price hikes after taking two rounds of price hikes this year as it expects commodity inflation to worsen in the second quarter. “We will be considering calibrated and progressive price increased because the commodity situation is really unprecedented seen in Q1 and Q2. We expect this to be severe,” Shailesh Chandra, Managing Director and CEO of Tata Motors PV, had told reporters in a media conference call after the company announced its fourth-quarter earnings.
The increase in commodity costs during Q1 hit the carmaker’s margin. To improve margins, the automaker is planning a combination of cost reduction measures and calibrated price increases.
DON'T MISS | Tata Motors PV weighs more price hikes amid commodity pressure
“Quarter 2 is going to hit the industry badly. H1 is going to be significantly bad as far as commodity prices are concerned,” said Chandra. “In the automobile industry, you don't immediately pass on these increases. First, there is always an attempt to do aggressive cost reduction. Even if we have to go for price increases, this will be more gradual and calibrated,” he said.
Before this Hyundai Motor India had also announced that it would increase prices across its portfolio by up to 1 per cent from September. They said the price hike was due to rising input and commodity costs, along with ongoing geopolitical and macroeconomic uncertainties. It had said that the company tries to optimise costs and absorb cost escalations but the persistence of price pressures had necessitated the passing on of the increased costs.
Tata Motors Passenger Vehicles (TPMV) announced on Friday that it would increase the prices of its vehicles – both internal combustion engine (ICE) and electric vehicles (EV). The extent of the price hike would vary according to variants, it said.
Tata Motors PV said it would increase prices by ₹25,000, and it would be effective from September 1.
MUST READ | Tata Motors Passenger Vehicles: Business outlook, valuation and price targets
“The extent of the price increase will vary across models and variants, ensuring that the overall value proposition of each offering is maintained. This price revision is being undertaken to partially offset the impact of rising input costs and sustained inflationary pressures. While TMPV continues to absorb a significant portion of these increases, a part of the impact is being passed on to customers through this adjustment,” it said in a regulatory filing.
This is the third price hike announced by Tata Motors PV. The company had raised prices across its passenger vehicle portfolio by up to 1.5% from July 1, 2026. Prior to this, the automaker had increased prices across its internal combustion engine (ICE) passenger vehicle portfolio by 0.5% from April 1, 2026.
On August 14, Business Today reported that Tata Motors PV is weighing more price hikes after taking two rounds of price hikes this year as it expects commodity inflation to worsen in the second quarter. “We will be considering calibrated and progressive price increased because the commodity situation is really unprecedented seen in Q1 and Q2. We expect this to be severe,” Shailesh Chandra, Managing Director and CEO of Tata Motors PV, had told reporters in a media conference call after the company announced its fourth-quarter earnings.
The increase in commodity costs during Q1 hit the carmaker’s margin. To improve margins, the automaker is planning a combination of cost reduction measures and calibrated price increases.
DON'T MISS | Tata Motors PV weighs more price hikes amid commodity pressure
“Quarter 2 is going to hit the industry badly. H1 is going to be significantly bad as far as commodity prices are concerned,” said Chandra. “In the automobile industry, you don't immediately pass on these increases. First, there is always an attempt to do aggressive cost reduction. Even if we have to go for price increases, this will be more gradual and calibrated,” he said.
Before this Hyundai Motor India had also announced that it would increase prices across its portfolio by up to 1 per cent from September. They said the price hike was due to rising input and commodity costs, along with ongoing geopolitical and macroeconomic uncertainties. It had said that the company tries to optimise costs and absorb cost escalations but the persistence of price pressures had necessitated the passing on of the increased costs.