Tata Motors PV weighs more price hikes amid commodity pressure

Tata Motors PV price hike: Tata Motors Passenger Vehicles 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, 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 domestic margin by nearly 4.5% of revenue, according to Chandra.

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To improve margins, the automaker is planning a combination of cost reduction measures and calibrated price increases.

“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.

The MD & CEO of India’s biggest electric carmaker said there is a possibility of more price increases in EVs. Tata Motors Passenger Vehicles increased prices of its passenger vehicle portfolio, including both internal combustion engine (ICE) and electric vehicles (EV), by up to 1.5% from July 1, 2026, after taking a price hike for ICE vehicles in April.

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“EV inflation might have been slightly higher… The outlook can be slightly more adverse for EVs as compared to ICE. But we have a more steeper cost reduction plan as far as EVs are concerned because of redesign of some of our subsystems,” said Chandra