TL;DR
Major automakers in India will increase car prices by up to 3% from January 2026 due to rising raw material costs and a depreciating rupee, impacting both mass-market and premium segments.
Several major automakers in India, including Hyundai, Honda, Tata Motors, Renault, JSW MG Motor, Nissan, BYD, Mercedes-Benz, and BMW, have announced plans to increase ex-showroom prices for their car models starting January 2026. These price hikes are expected to average up to 3% across both mass-market and premium segments. This move comes after a period where earlier GST reductions in 2025 had temporarily lowered prices and boosted consumer demand.
The primary reasons cited for these price adjustments are rising raw material costs, including steel and plastics, and the depreciation of the Indian rupee against major global currencies, which increases the cost of imported components. Automakers are adjusting their pricing strategies to maintain profitability amidst these escalating operational pressures. This annual practice allows manufacturers to factor in production cost increases and align pricing with market dynamics.
