Tata Motors to hike car, EV prices by up to ₹25,000 from September 1, third rise this year

Tata Motors Passenger Vehicles (TMPV) will increase prices across its passenger vehicle portfolio, including internal combustion engine (ICE) models and electric vehicles (EVs), by up to ₹25,000 from September 1, 2026. This will be the third price hike announced by the company’s passenger vehicle business this year.

The extent of the increase will vary across models and variants, the company said. The 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,” the company said in a statement.

The company added that the price increase will vary across models and variants while ensuring that the overall value proposition of each offering is maintained.

TMPV had earlier increased prices across its passenger vehicle portfolio by up to 1.5% from July 1. The July increase was applicable across both ICE and EV models, with the quantum varying by model and variant. Before that, the company had raised prices across its ICE passenger vehicle range by an average 0.5% from April 1, citing rising input costs.

The latest hike comes days after TMPV Managing Director and CEO Shailesh Chandra indicated that further price increases could be required as commodity costs continued to put pressure on margins. In an interaction following the company’s Q1 FY27 results, Chandra said commodity price increases during the quarter were equivalent to around 4.5% of domestic business revenue.

The latest price increase also comes as other automakers raise prices. Hyundai Motor India said on August 19 that it would increase vehicle prices by up to 1% across its portfolio from September. The company said the increase was necessitated by “rising input and commodity costs, higher operational expenses and continuing geopolitical and macroeconomic uncertainties”.

Hyundai said it had been making efforts to optimise costs and absorb cost escalations to minimise the impact on customers. However, the persistence of these cost pressures had necessitated passing on a portion of the increased costs through the latest price revision.

Maruti Suzuki India has also raised prices this year, citing sustained inflationary pressures and rising input costs. The company had said it continued to undertake cost-optimisation measures but would pass on a part of the additional costs to customers.