Tata Motors Limited's passenger vehicle business announced price increases of up to Rs 25,000 across its SUV and car portfolio and indicated it could face around 300 basis points of sequential cost pressure in Q2. Its passenger vehicle EBITDA margin was 6.6% in Q1, down 225 basis points year-on-year, hurt by higher domestic commodity costs and weak Jaguar Land Rover demand in China.

Tata Motors Limited reported its domestic passenger vehicle business grew volumes 46% and revenue 64.8% to Rs 17,900 crore with EBITDA margin at 4.3%, up 30 basis points, but at the consolidated level including Jaguar Land Rover, revenue rose 9.3% to Rs 95,799 crore while net profit plunged nearly 80% to Rs 775 crore due to JLR supply constraints, commodity costs and foreign exchange movements.

Tata Motors Limited signed a power purchase agreement with Welspun New Energy unit Welspun Renewable Energy to co-develop an 86 MW wind-solar hybrid project to supply clean power to four Tata Motors manufacturing plants in Jharkhand, Uttar Pradesh, Uttarakhand and Karnataka.

Tata Motors Limited, through its Passenger Vehicles Managing Director Shailesh Chandra, expects industry growth of 15-20% in the September quarter before moderating to below 10% in H2 due to a high post-GST base, while still seeing full-year growth safely above 10%. The company is building inventory ahead of October retail demand and, according to Motilal Oswal Financial Services, sees supply as the main constraint for EVs, targeting more than 70% EV volume growth in FY27 and an exit market share above 40%.

Tata Motors Limited said its passenger vehicles unit, Tata Motors Passenger Vehicles, will increase prices of its cars and SUVs by up to Rs 25,000 from September 1, 2026, across both internal combustion engine and electric vehicle models and variants, to partially offset rising input costs and sustained inflationary pressures while continuing to absorb a significant portion of the cost increases.

Tata Motors Limited has signed an initial pact with EV leasing platform Drivn to explore lease-based deployment of electric commercial vehicles for fleet operators.

Jefferies assigned an Underperform rating to Tata Motors Passenger Vehicles, the passenger vehicle unit of Tata Motors Limited, citing margin risks and earnings downgrades for four-wheeler OEMs. The brokerage noted the passenger vehicle segment's 15% year-on-year EBIT decline despite 25% volume growth, driven by discounting and inability to pass on costs, and a 6% cut in consensus FY27 EPS estimates for four-wheelers.

Tata Motors Limited's M&HCV goods-carrier sales rose 22.9% year-on-year to 39,484 units in Q1 FY27, according to SIAM data, outpacing the industry's 19.6% growth. Managing Director Girish Wagh said replacement demand is hard to separate from fresh additions and noted robust freight movement, while the company took a 2.5% net price increase in July to offset steel and rubber inflation.

Tata Motors is among the manufacturers affected by the Commission for Air Quality Management order dated August 19 that will bar new petrol, diesel and CNG N1 vehicles up to 3.5 tonnes in Delhi from January 1, 2027 and non-electric N2 vehicles of 3.5-7.5 tonnes from January 1, 2028, with phased extension to NCR districts. The Commission noted Tata Motors has electric N1 offerings, while nine manufacturers currently offer 20 electric N1 models.

Tata Motors Limited's commercial vehicle shares rose 2% to Rs487.40 on Thursday, the highest since March 3, 2026 and near the record high of Rs508.95 hit on February 27, 2026, after gaining 4% over three straight sessions and rebounding 22% from the June low of Rs398.55. ICICI Securities upgraded Tata Motors Limited to BUY with a SOTP-based target of Rs550 and InCred Equities retained an add rating with a target of Rs496, while the company's FY26 annual report guided for more moderate FY27 industry growth supported by infrastructure activity and fleet utilisation.

Kotak Institutional Equities named Tata Motors Limited's commercial vehicle business as a top pick while noting Tata Motors Limited's passenger vehicle EBITDA fell 13.4% in 1QFY27 on weaker domestic profitability as aggregate OEM EBITDA grew only 8.2% despite 26% volume growth.