Tata Motors PV shares rise after automaker's plan to raise prices by up to ₹25,000/unit from September

Tata Motors Passenger Vehicles (PV) share price gained during the morning market hours on Friday, August 21, as investors focused on the company’s latest price hike update across its cars and SUV portfolio, effective from the beginning of September 2026.

After the 9:15 am opening bell, Tata Motors PV shares surged 1.01% to touch an early market high of ₹324.55 apiece on Friday’s market, in comparison to ₹321.30 apiece at the previous equity market close on NSE.

After touching the early market high, the company shares were trading 0.16% higher at ₹320.65 apiece during the market hours on August 21.

As per the latest NSE filing, Tata Motors PV will increase its prices across both its internal combustion engine (ICE) and electric vehicle (EV) segments by up to ₹25,000 per unit, effective from Sptember 1, 2026.

“The extent of the price increase will vary across models and variants, ensuring that the overall value proposition of each offering is maintained,” the company informed the stock exchanges ahead of Friday’s opening bell.

The automaker’s price increase move comes right before the upcoming festive season, during which auto sector companies record higher sales and revenue growth due to the elevated demand in the market.

Why is Tata Motors PV increasing its prices?

Tata Motors PV is increasing its prices across its car and SUV portfolio in an effort to partially offset the impact of rising input costs, which the company has to incur due to higher raw material expenses.

Since the conflict between the United States and Iran in West Asia began earlier this year, raw material prices have skyrocketed in the market, in turn weighing down the margins of companies across sectors.

“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,” the company informed the stock exchanges.

Through this price hike, Tata Motors PV also aims to sustain inflationary pressure in the market, at a time when the Reserve Bank of India (RBI) estimates domestic retail inflation to peak in the October to December quarter of FY27.

In the August 2026 monetary policy meeting outcome, RBI shares a forecast that CPI inflation in the Indian economy is estimated to peak at 5.9% in Q3 FY27 amid the continued pressure from higher food, fuel and other input prices.

TMPV Gujarat plant in focus

After market hours on Thursday, August 20, Tata Motors PV disclosed that operations at the company’s manufacturing plant at Sanand, Gujarat, are now back to normal and the supplies have been restored post the recent disruption.

The company further disclosed that the plant witnessed a temporary disruption due to the flooding caused by the heavy rainfall in the region.

Tata Motors PV share performance

Tata Group’s automaking arm, Tata Motors, carried out a demerger of its passenger vehicle (PV) and commercial vehicles (CV) business back in October 2025, after which the CV segment was listed on the stock exchange as a separate entity.

Accounting for that factor, Tata Motors PV shares have lost 12% on a year-to-date basis in 2026 and were trading 3.9% lower in the past one-month period, according to NSE data.

The company's shares were trading 4.16% lower in the last five market sessions, as per the exchange data.

Tata Motors PV’s market capitalisation (m-cap) was at over ₹1.18 lakh crore as of the trading session on Friday, August 21, 2026.