Daijiworld Media Network – Mumbai

Mumbai, Aug 21: Tata Motors Passenger Vehicles Limited will increase prices of its cars and SUVs, including petrol, diesel and electric models, by up to Rs 25,000 from September 1.

The company said the price revision has been necessitated by rising input costs and sustained inflationary pressures. The increase will vary depending on the model and variant.

In a regulatory filing on Friday, Tata Motors Passenger Vehicles said the revision was aimed at partially offsetting the impact of higher input costs while the company would continue to absorb a significant portion of the increased expenses internally.

The price hike will apply across the company's passenger vehicle portfolio, covering both internal combustion engine (ICE) vehicles and electric vehicles (EVs).

The company said the revised prices would be implemented while maintaining the overall value proposition of its products.

Tata Motors' announcement comes a day after Hyundai Motor India announced a price increase of up to 1% across its vehicle range from September, citing rising input and commodity costs, higher operating expenses and continued geopolitical and macroeconomic uncertainties.

The latest price revisions come amid continuing cost pressures in the automobile sector. Kotak Institutional Equities recently noted that while demand momentum is expected to remain steady, persistent commodity costs and weakness in global automobile markets could put pressure on manufacturers' margins.

According to the brokerage, automobile manufacturers recorded strong volume growth during the first quarter of FY27, although higher commodity costs limited growth in operating profits.

While crude oil, aluminium and precious metal prices have eased from their first-quarter peaks, providing some potential relief to manufacturers, domestic steel prices have remained firm.