TL;DR
Major Indian automakers are raising car prices by up to 3% starting January 2026 due to increased input costs and currency fluctuations, following a period of GST reductions.
Indian car buyers are set to face increased prices on a range of new vehicles as several major automakers, including Hyundai, Honda, Tata Motors, Renault, and BMW, have announced price hikes effective from January 1, 2026. These adjustments are expected to average up to 3% and will impact various segments, from mass-market hatchbacks to luxury electric vehicles. The primary reasons cited for these increases are rising input costs, currency fluctuations, and increased operating expenditures.
This trend is part of the industry's customary annual cycle of pricing revisions, where manufacturers typically adjust prices at the beginning of the new year to factor in production cost increases and maintain profit margins. While the Indian government's GST reductions in September 2025 had temporarily lowered prices and boosted demand, automakers are now adjusting to global supply chain issues and inflationary pressures. December 2025 saw a surge in auto retail, partly driven by year-end offers and pre-buying ahead of these anticipated price increases.
