Tata Motors to hike commercial vehicle prices by up to 1% from October 1; third increase in FY27

Tata Motors will increase prices of its commercial vehicles by up to 1% from October 1, 2026, marking the company’s third price hike in the segment in FY27 as higher commodity and input costs continue to weigh on the business. The latest increase will apply across its commercial vehicle range, with the quantum varying by model and variant, the company said on Thursday.

The announcement comes as Tata Motors’ commercial vehicle business continues to report strong volume growth. Total sales across domestic and international markets rose 49% year-on-year to 44,411 units in August, from 29,863 units a year earlier. Domestic medium and heavy commercial vehicle sales increased 31% to 17,531 units during the month.

Third CV price increase in FY27

Tata Motors had raised commercial vehicle prices by up to 1.5% from April 1, citing higher commodity prices and other input costs. It followed this with a sharper up to 2.5% increase from July 1, which the company described as a move to partially offset cost pressures.

The latest 1% increase therefore comes barely three months after the July revision. Unlike a uniform increase across the portfolio, Tata Motors said the October adjustment will depend on the individual model and variant. The company said the revision is being undertaken to “offset the rise in commodity and other input costs.”

CV volumes remain on an upward trajectory

The price revision comes against a backdrop of improving commercial vehicle volumes. Tata Motors sold 39,641 CVs in July, up 37% from 28,956 units in July 2025. Domestic sales of medium and heavy intermediate commercial vehicles rose 25% to 15,435 units.

For the first quarter of FY27, Tata Motors reported 1,08,488 commercial vehicle sales across domestic and international markets, up 27% year-on-year from 85,606 units. Its standalone Q1 FY27 revenue stood at ₹19,329 crore, up 23%, while EBITDA increased 17% to ₹2,300 crore. The company reported that profitability remained resilient despite commodity headwinds.

Cost pressures continue to shape pricing

The repeated revisions underline the pressure on commercial vehicle manufacturers to pass on at least part of the increase in raw-material and other input costs while maintaining volumes. Tata Motors’ July increase had also been linked to commodity and input-cost pressures, with industry reports noting the impact of the West Asia conflict on costs.

The October 1 increase will be the third CV price revision announced by Tata Motors in FY27, following the April and July hikes. The company has not disclosed the exact price increase for individual models or variants.