Tata.Cars will go for more price hikes as rising commodity costs continue to put pressure on its margins. Tata Motors Passenger Vehicles (TMPV) MD Shailesh Chandra said that the company saw a commodity cost increase equivalent to about 4% of revenue in the first quarter, while the impact was around 2% of revenue last year. He added the latest quarter (Q2FY27) could see another increase of around 3%, with a variation of 0.5 percentage points.
Last month, the automaker had announced increasing prices across its portfolio, covering both internal combustion engine (ICE) and electric vehicles (EV), by up to Rs 25,000, effective 1st September 2026. This was the third time in recent months that TMPV initiated a price hike.
Persistent inflation and higher commodity costs, compounded by disruptions to global trade and energy markets from the US-Iran war, are prompting most carmakers in India to raise vehicle prices. Besides TMPV, other carmakers such as Maruti Suzuki, Hyundai and Mahindra & Mahindra have increased prices in quick succession.
“Cost side has been impacted significantly… And a lot has been triggered because of certain events which have happened in the past five-six months. It continues to be a matter of concern,” stated Chandra on the sidelines of compact sedan Aeris launch.
He added that the concern for them as a business is that it is not possible to pass on these increases to the market at the speed at which the prices have increased. “So that remains a matter of concern, which creates immense margin pressure and immense effort from a cost reduction perspective,” he said.
Chandra stated that automakers have so far kept price increases below 5% since the implementation of GST 2.0 in late September 2025.
“It could be a sub-5% price increase so far by any manufacturer, from the time of GST. Even after GST, opportunistically OEMs (original equipment manufacturers) could have taken a price increase more aggressively, right? But rather, after GST there were more discounts also in the market. I think the first thing which has gone away is the discount because of the supply being more or less slightly behind the demand,” he said.