Tata Motors Passenger Vehicles (TMPV) announced on Friday its intention to increase the price of its portfolio of cars and SUVs, both internal combustion engine (ICE) and electric vehicles (EVs), by up to 25,000 Indian rupees starting September 1. This decision comes amid rising raw material costs and general inflationary pressure.
According to the regulatory filing on Friday, the exact amount of the increase will depend on the specific model and configuration. This hike follows previous price adjustments introduced by major automakers due to sustained high component costs.
The latest indexation occurred just two months after Tata Motors raised passenger car prices by 1.5 percent from July 1. Furthermore, the company had previously increased the prices of its ICE portfolio by an average of 0.5 percent from April 1. Thus, the September revision marks the third round of price increases this year for Tata Motors' passenger vehicle division, highlighting the pressure exerted by rising raw material and other input costs.
Tata Motors stated that it continues to absorb a significant portion of the increased expenses but is forced to pass some of this burden onto consumers. The company's official statement noted: 'This price revision is made to partially offset the impact of rising raw material costs and persistent inflationary pressure. Although TMPV continues to absorb a significant part of these increases, some of the impact is passed on to customers through this adjustment.'
Price pressure is not limited to Tata Motors. Maruti Suzuki has announced a price hike across its entire range of up to 30,000 rupees, effective in August, while Hyundai Motor India has reported an increase of up to 1 percent starting in September. This trend indicates a broader issue for the Indian passenger car market: manufacturers are trying to maintain their margins without fully passing on increased costs to buyers, which is becoming harder due to recent raw material price surges.
Earlier this month, Tata Motors Passenger Vehicles reported that raw material costs rose by 4.5 percent in the first quarter of fiscal year 27 and are expected to rise further by 3 percent in the second quarter, creating additional strain on profitability.