Tata Motors Warns of More Margin Pressure

Indian automaker Tata Motors expects commodity inflation to put further pressure on profit margins, with its passenger vehicle division facing an estimated 3% impact on revenue in the July-September quarter. Managing Director Shailesh Chandra said the company is concerned about how long higher commodity costs will remain uncertain.

Rising energy, freight and raw material costs linked to the Iran war have made it difficult for automakers to pass higher costs on to customers quickly. Tata Motors has already increased car prices by less than 5%, but Chandra indicated another price hike could be announced, without giving a timeline.

Meanwhile, higher fuel prices are boosting demand for electric and CNG vehicles in India. Tata Motors has doubled its EV production capacity to more than 16,000 units a month, while EVs now account for 21% of its domestic car sales, up from 14% last year. The company also launched the Aeris compact sedan, starting at ₹5.29 lakh, with petrol and CNG options.

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