Tata Motors to raise car, SUV prices by up to ₹25,000 from September 1 | Auto

Tata Motors Passenger Vehicles (TMPV) will raise prices of its cars and sport utility vehicles by up to ₹25,000 from September 1, the company said on Friday.

The increase, which will vary across models and variants, will cover both internal combustion engine (ICE) and electric vehicles (EVs). It will be the company’s third price revision this year.

TMPV said the increase was intended to partially offset rising input costs and sustained inflationary pressures. The company continues to absorb a significant portion of the cost increase but is passing on part of the impact to customers.

The announcement follows two earlier revisions this year. Tata raised prices across its ICE portfolio by a weighted average of 0.5 per cent from April 1. This was followed by an increase of up to 1.5 per cent across both ICE and electric vehicles from July 1.

The September revision will, therefore, be the second consecutive increase covering the company’s electric models as well.

Commodity inflation affected Tata’s domestic passenger-vehicle business by an amount equivalent to around 4.5 per cent of its revenue during the June quarter, Managing Director and Chief Executive Officer Shailesh Chandra said during the company’s quarterly media call.

Chandra indicated that the pressure would remain severe in the September quarter, with further commodity increases over and above the impact seen during the first quarter.

Cell costs had increased by an estimated 10 per cent sequentially, making the inflation outlook slightly more adverse for electric vehicles than for ICE models, he said.

The company is seeking to offset the pressure through accelerated cost reductions and gradual price increases rather than passing on the entire increase to consumers immediately.

Motilal Oswal Financial Services estimates that Tata PV could face a residual commodity-cost impact of around 3 per cent during the September quarter.