Tata Motors may hike price of its cars and commercial vehicles soon
Tata cars and commercial vehicles may see third price hike in FY27 soon, after two such moves in April and July this year.
Tata Motors may hike the pricing of its passenger vehicle range again. In that case, it would be the third price hike for the Tata passenger vehicles since April, as the homegrown automobile giant has already hiked prices of its PVs twice in FY27, once in April and later in July. Not only the passenger vehicles, but the commercial vehicles of the OEM too witnessed price hikes twice in this fiscal.
The automaker has stated that it expects demand to stay firm for its electric vehicles and commercial vehicles in the coming quarters, supported by higher-payload trucks, rising EV demand, and a strong government order book. At the same time, it said the company is facing commodity expense-related inflation pressure, which could be mitigated through price hike actions and cost control measures. In that case, expect both the passenger vehicle and commercial vehicle range of the company to be pricier in the near term. However, Tata Motors has not revealed any timeframe for a price hike.
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Rising aluminium and steel prices, exacerbated by the Middle East crisis, have pressured vehicle makers to raise prices to offset higher input costs. In the first quarter of FY27, Tata Motors reported a profit of ₹1,528 crores, compared with ₹1,411 crores a year earlier. The company's total expenses jumped 23.6% to ₹17,668 crores, compressing the company's core profitability margin by 60 basis points to 11.7%. Revenue from operations rose 23.3% to ₹19,330 crores in Q1 FY27.
The automaker claimed that demand for Tata Motors' commercial vehicles remained resilient during the quarter, aided by higher freight availability, infrastructure projects, and growth in e-commerce-led logistics.
Tata Motors' domestic sales volumes rose 26%, and exports rose 35% from a year earlier, with Tata Motors looking to generate demand in more international markets as the Middle East crisis disrupts trade flows, while it expects to ramp up deliveries under a large commercial vehicle order in Indonesia.
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