Tata Motors Passenger Vehicles will raise prices of its passenger vehicles by up to Rs 25,000 from September 1, 2026, according to an exchange filing on Friday. The price revision will apply to both internal combustion engine and electric vehicle models, with the extent of the increase varying across models and variants.

The company said the price hike is aimed at partially offsetting the impact of rising input costs and sustained inflationary pressures. Tata Motors Passenger Vehicles added that it continues to absorb a significant portion of the increase in costs, while passing on part of the impact to customers.

Separately, Tata Motors Passenger Vehicles has restored operations at its Sanand manufacturing facility in Gujarat after flooding disrupted production at the plant. The company said operations at the facility and those of suppliers supporting the plant have now returned to normal.

The automaker estimated the damage caused by the flooding at around Rs 35 crore to Rs 40 crore and said the insurance claim expected to be lodged in connection with the damage would be non-material. The company said the actual amount of damage is still being assessed.

Production of the Tiago, Tigor, Nexon and Sierra models was affected by the flooding. Tata Motors Passenger Vehicles said necessary measures were taken to restore normal operations after the flood water receded and that the disruption did not have a material impact on its operations or financial performance.

The price increase comes at a time when Tata Motors is facing softer demand in India's passenger vehicle market. The company sold 45,199 passenger vehicles in India in July 2026, compared with 50,701 units in the same month last year, representing an 11% year-on-year decline.