Tata Motors Passenger Vehicles has said there could be another round of price hikes in the coming days as input costs continue to grow because of geopolitical issues.
“It could be a sub-five per cent price increase so far by any manufacturer, from the time of GST.
We have taken one price increase in September itself, so the next price increase is too premature to tell you, because we have to review when we can do the next price increase,” he noted.
Compact sedan Aeris launchedThe company, on Friday, launched a new compact sedan — Aeris — priced between ₹5.29 lakh and ₹9.19 lakh (ex-showroom, introductory prices).
So there is a clear section of customers who is looking for a compact sedan,” he added.
Tata Motors Passenger Vehicles has said there could be another round of price hikes in the coming days as input costs continue to grow because of geopolitical issues.
When asked about the impact of GST 2.0 which has created positive sentiment over the last one year, Shailesh Chandra, Managing Director and Chief Executive Officer, Tata Motors Passenger Vehicle, said it would continue despite a rise in vehicle prices, which are still better as compared to pre-GST reforms last year (September 22, 2025).
“It could be a sub-five per cent price increase so far by any manufacturer, from the time of GST. And, even after GST, opportunistically OEMs (original equipment manufacturers) could have taken a price increase more aggressively, but rather, after GST there were more discounts also, in the market. I think the first thing which has gone away is the discounting because supply is slightly behind demand I would say. So that part has gone away,” Chandra told businessline on the sidelines of a new launch here.
He said the price increase has not been to the extent of the reduction on the GST side.
“Still, there is significant headroom, and that is why demand is unfolding at this level. But, yes, growth rates will come down,” he added. Having said that Chandra also said the inability to pass on commodity-cost increases at the same pace was putting pressure on margins, requiring greater focus on cost reduction.
“But, whenever we take the price increases, it will be in smaller escalations, so that it does not immediately impact demand. So, they will be progressive, incremental price increases that we’ll take over a period of time. We have taken one price increase in September itself, so the next price increase is too premature to tell you, because we have to review when we can do the next price increase,” he noted.
Compact sedan Aeris launched
The company, on Friday, launched a new compact sedan — Aeris — priced between ₹5.29 lakh and ₹9.19 lakh (ex-showroom, introductory prices). It will replace the Tigor compact sedan and will be sold only to private customers for personal usage and not for fleet or taxi services, Chandra said.
The Aeris will be available in Petrol and CNG versions right now, and going forward, the electric version of the car will also be offered, he said.
Talking about compact sedan, Chandra said the market is about 3.40 lakh units in a year, and although the share has been declining in the overall sedan segment, the volume of compact sedan is increasing.
“In just the last one year, it has grown by about 25-26 per cent, so it is a growing segment in terms of size. It also has a GST impact. So there is a clear section of customers who is looking for a compact sedan,” he added.
Tata Motors Passenger Vehicles had reported 59 per cent year-on-year growth in its domestic wholesales (dispatches to dealers) at 65,253 units in August, as compared with 41,001 units in the same month last year.
Published on September 25, 2026
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