TL;DR
Indian automakers, led by luxury brands, are increasing vehicle prices in early 2026 due to escalating input costs and rupee depreciation, impacting overall market affordability.
Several prominent automakers in India, including Mercedes-Benz and BMW, have begun implementing price increases across their vehicle lineups starting January 2026. This trend is largely attributed to the persistent rise in input costs, including raw materials and components, alongside the impact of currency depreciation. Mercedes-Benz India, for instance, anticipates quarterly price adjustments of around 2% throughout 2026 to offset these rising expenses.
While global supply chain issues have contributed to these cost pressures, the depreciation of the rupee has further exacerbated the situation for manufacturers relying on imported parts. This move by luxury car brands sets a precedent, with other segments of the automotive industry also expected to announce price hikes, impacting overall vehicle affordability for consumers across the Indian market.
