The Mumbai-based company, however, is currently reviewing the market situation with regards to its commercial vehicle business for a similar step and will take a call later.
"While there is to be about 1 per cent hike in our passenger vehicles pricing, the commercial vehicles business continues to review the situation and will take a call subsequently," a Tata Motors spokesperson said.
Tata Motors markets a range of vehicles, ranging from passenger cars to heavy duty commercial vehicles.
The company's passenger vehicle portfolio comprises models from entry level hatchback Nano priced between Rs 1.5 lakh to multi utility vehicle Aria, which is priced up to Rs 14.95 lakh (ex-showroom Delhi).
Last week, leading car-makers Maruti Suzuki India and Hyundai had also announced to hike prices from January, joining the likes of Mercedes, BMW, Audi and Honda.
Maruti and Hyundai had cited rising input costs as the main reason for hiking the prices, across their entire model range, from next month but had not specified the quantum of the expected increase.
Earlier in the month, Honda Cars India Ltd (HCIL) had announced to take a price hike from first week of next month to partially offset impact of adverse exchange rate and inflation.