Tata Motors Passenger Vehicles has said that the input costs continue to grow because of geopolitical issues and there could be another round of price hikes in the coming days.
When asked about impact of GST 2.0 which has created positive sentiments over the last one year, Shailesh Chandra, Managing Director and Chief Executive Officer, Tata Motors Passenger Vehicle said that it will continue despite rise is prices of vehicles, which are still better as compared to pre-GST reforms last year (September 22, 2025).
“It could be 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 think the first thing which has gone away, is the discounting because of the supply being more or less slightly behind the 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 have not been to the extent of the extent of reduction on the GST side.
“Still, there is a significant headroom, and that is why the demand is unfolding at this level. But, yes, rowth rates will come down,” he added.
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 to only 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, Tata Motors will also offer the electric version of the car, 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 last one year itself, it is 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) to 65,253 units in August as compared with 41,001 units in the same month last year.
Published on September 25, 2026
