Tata Motors To Hike Car And SUV Prices By Up To Rs 25,000 From September 1

Tata Motors Passenger Vehicles Ltd (TMPV) will raise prices across its car and SUV lineup by up to Rs 25,000, effective September 1, 2026. The Tata Motors price hike covers both ICE and EV models, with the increase varying by vehicle and variant.

TMPV becomes the second manufacturer after Hyundai to confirm a price increase for September 2026, and Maruti Suzuki is expected to follow with a similar revision. More carmakers are likely to announce hikes of their own in the coming weeks.

The company has attributed the move to rising input costs and sustained inflationary pressure. TMPV said it continues to absorb a significant portion of these cost increases, with only part of the impact being passed on to customers through this revision. The extent of the hike will differ by model and variant to keep each offering's value proposition intact.

Reasons Behind The Tata Motors Price Hike

EV battery cell costs rose by around 10 percent quarter-on-quarter during the June 2026 quarter, adding pressure on margins. Foreign exchange revaluations and one-time employee separation costs added further strain on profitability.

TMPV's domestic passenger vehicle volumes grew 46 percent in Q1 FY27, and EV sales more than doubled over the same period. Revenue from operations stood at Rs 20,667 crore, profit before tax came in at Rs 2,970 crore, and profit for the period was Rs 2,556 crore.

EBITDA margin contracted to 7.4 percent despite the sales growth, as raw material costs for steel, aluminium and batteries increased and supply chain disruptions affected Jaguar Land Rover. The price revision is aimed at restoring balance between rising costs and customer value while keeping the brand competitive against rivals also raising prices.

Which Tata Cars Get Costlier

Tata's passenger vehicle range includes the Tiago, Tigor, Punch, Nexon, Curvv, Sierra, Harrier, Safari and Altroz. All these models, apart from the Safari and Altroz, are offered with EV derivatives as well.

The Safari EV is expected to launch soon, though there is no confirmation yet on an EV version of the Altroz, despite a concept having been showcased in the past.