After Hyundai, Tata Motors Passenger Vehicles increases car prices

Tata Motors Passenger Vehicles Ltd. (TMPV) will growth costs throughout its portfolio, covering both internal combustion engine (ICE) and electric vehicles (EV), by up to Rs 25, 000, effective 1st September 2026.

Key points

• Earlier, Mahindra & Mahindra confirmed an average rate growth of 2.7% on its sports utility vehicles (SUVs) and 2% on its Commercial Vehicle (CV) range, effective July 10, 2026.
• The latest revision additionally marked Hyundai's third rate hike in 2026.
• According to Tata Motors PV, the rate revision is being undertaken to partially offset the impact of rising input costs and sustained inflationary pressures.
• This would be the third time in recent months that the Mumbai-headquartered carmaker is going for a cost hike.
• The Korean automaker attributed the cost revision to rising input and commodity costs, higher operational expenses and continuing geopolitical and macroeconomic uncertainties.

This would be the third time in recent months that the Mumbai-headquartered carmaker is going for a cost hike. TMPV in June had decided to growth costs of its four-wheelers for the second time in a span of three months.

According to Tata Motors PV, the rate revision is being undertaken to partially offset the impact of rising input costs and sustained inflationary pressures. 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, continued the automaker.

TMPV offers a diverse PV lineup spanning hatchbacks, sedans, and SUVs. Powertrain options include petrol, diesel, CNG, and electric (EV) variants, with rates generally ranging from Rs 4.70 Lakh to over Rs 22 Lakh.

In practice, the fresh announcement by TMPV comes days after rival carmaker Hyundai Motor India Ltd (HMIL) confirmed that it will rise rates of its vehicles by up to 1% throughout its portfolio from September 2026. The Korean automaker attributed the cost revision to rising input and commodity costs, higher operational expenses and continuing geopolitical and macroeconomic uncertainties.

For context, the latest revision additionally marked Hyundai's third rate hike in 2026. The automaker had earlier raised vehicle rates by 0.6% from January 1 and by up to Rs 12, 800 from June 1, depending on the model and variant.

Citing persistent inflationary pressures and rising commodity costs, most carmakers in India continue to raise vehicle rates. Disruptions to global trade and ‌energy markets due to the US-Iran war are driving up costs.

For the second time in three months, Maruti Suzuki India (MSIL), the country's largest carmaker, in July confirmed that it will rise rates throughout its model range, effective August 2026. Earlier, Mahindra & Mahindra confirmed an average rate growth of 2.7% on its sports utility vehicles (SUVs) and 2% on its Commercial Vehicle (CV) range, effective July 10, 2026.

For now, after Hyundai, Tata Motors Passenger Vehicles increases car prices remains the part of the story worth watching, and further updates are likely as more details are confirmed.