Tata Motors to hike vehicle prices by up to ₹25,000 from September

Tata Motors announced on Monday that it will raise the prices of its passenger vehicles and sport utility vehicles by up to ₹25,000 effective September 1, marking the company's third price correction this calendar year.

The Pune-based automaker attributed the increase to sustained cost pressures stemming from elevated input expenses and inflationary headwinds. The company had previously implemented price adjustments earlier in the year to offset similar cost challenges affecting the automotive sector.

The magnitude of the price increase will vary across different models and variants in Tata Motors' portfolio, with some vehicles seeing smaller adjustments while others face the maximum hike of ₹25,000. The company said the decision was necessary to maintain operational margins amid an environment of persistent cost inflation.

Tata Motors joins several other Indian automakers in passing on costs to consumers this year. The broader automotive sector has contended with rising steel prices, semiconductor costs, and other supply chain challenges throughout 2024. Industry analysts expect continued pricing pressure in the coming months unless commodity costs moderate significantly.

The price increase announcement comes as the monsoon-driven off-season typically sees reduced consumer demand in the Indian automobile market. Tata Motors has urged customers considering purchases to finalize orders before the September 1 deadline to benefit from current pricing.