Tata Motors is understood to be mulling a hike in the price of its passenger cars Indica and Indigo by a significant amount with effect from October 1.
According to an internal communication circulated among top Tata Motors officials, the company plans to hike prices to minimise the impact of rising input costs, particularly tyres.
A Tata Motors spokesperson declined to comment on the development.
Hyundai Motors also hiked the prices of its vehicles from this month. Hyundai Motor India hiked the prices of its products across models by up to 1.2 per cent from September 1.
The upward revision in the prices was necessary to offset rising input costs, especially that of commodities.
Maruti Suzuki had also hiked prices, driven by high commodity prices, in August. Maruti had hiked the prices of all of its models, except the Alto, by up to Rs 7,500.