Tata Motors PV hikes car prices for third time since April

The automaker is seeking to recover costs just as festive-season buying puts vehicle affordability and monthly loan repayments under greater scrutiny

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Tata Motors Passenger Vehicles on Friday said it will raise prices of its cars and SUVs by up to ₹25,000 from September 1, marking its third revision in five months as rising input costs squeeze margins ahead of the festive season. For some Harrier and Safari variants, the revision could potentially push the cumulative increase since April beyond ₹50,000.The timing puts Tata Motors PV’s pricing power to a particularly important test: the automaker is seeking to recover costs just as festive-season buying puts vehicle affordability and monthly loan repayments under greater scrutiny.Rivals raise pricesTata Motors PV isn’t alone. Hyundai Motor India, which raised prices by 0.6 per cent in January and by up to ₹12,800 from June 1, will implement another increase of up to 1 per cent in September. Maruti Suzuki has already announced increases of up to ₹30,000 twice since June, while offering price protection on some entry-level models.Mahindra & Mahindra also has taken steeper increases in percentage terms, raising ICE SUV prices by up to 2.5 per cent from April 6, with an average portfolio increase of 1.6 per cent, followed by an average 2.7 per cent increase from July 10.Three hikes in five monthsTata Motors PV began its current pricing cycle on April 1 with a weighted-average 0.5 per cent increase across its ICE portfolio. It followed that with an increase of up to 1.5 per cent across ICE and EV models from July 1.The management subsequently said its average price action was 0.5 per cent in both April and July, implying a cumulative portfolio-level increase of about 1 per cent through July. The actual impact, however, has varied sharply by model and variant.Harrier, Safari face biggest impactPublished price comparisons show selected Harrier variants became costlier by up to ₹22,000 in July, while some Safari variants rose by up to ₹21,000. Price of the Nexon increased by as much as ₹15,000, while increases on the Punch and Curvv were not as steep.If the Harrier and Safari variants that received the largest July increases attract the full ₹25,000 September revision, their July-September increase alone could reach ₹47,000 and ₹46,000, respectively. Any applicable April increase could push the cumulative rise beyond ₹50,000.That remains an upper-bound estimate. Tata has yet to disclose its September model- and variant-wise price list and has said the increase will vary across its portfolio.Cost pressures persist“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.The pricing action comes as commodity inflation squeezes margins. Tata Motors PV said the June-quarter inflation had an impact equivalent to about 4.5 per cent of domestic-business revenue, with another 3 per cent hardening expected in the September quarter.Dhiman Gupta, CFO of the company, had earlier told analysts that Tata Motors PV would take “further calibrated increases through the year” alongside cost reductions to protect margins, leaving the automaker balancing margin recovery against festive-season affordability.Published on August 21, 2026