Major automakers in India will see price increases beginning in January 2026.
The main causes of these increases and how customers can save money.
Drivers in India should be ready for increased sticker prices on many new cars as January 2026 approaches. With effect from January 1, 2026, a number of automakers have announced price increases for vehicles across brands and segments. This trend is being pushed by logistical difficulties, shifting currency exchange rates, and growing input prices. This is a part of the industry's typical yearly cycle of pricing revisions.
The Reasons for Price Increases
The majority of manufacturers attribute the price changes to increased costs for raw materials, logistics, and the depreciation of the Indian rupee in relation to other currencies. These increases helped brands preserve their margins while partially offsetting the benefits of earlier in 2025's large GST-led pricing reductions.
Overview of Brand-Wise Price Increases (Starting January 1, 2026)
Here's a quick look at how major Indian automakers are changing their prices:
| Brand | Expected Hike | Notes |
|---|---|---|
| Renault | Up to 2% | This applies to models like Kiger, Triber, and Kwid. |
| Honda | Not yet specified | All major models, such as City, Amaze, and Elevate, will become more expensive. |
| Mercedes-Benz | 2% | All models may see quarterly adjustments because of foreign exchange. |
| BMW | Up to 3% | This applies to both CKD and CBU models. |
| BYD | Varies (Sealion 7) | Price rise for the EV SUV; current bookings still at the existing price. |
| MG Motor | Up to 2% | Price rise for the EV SUV; current bookings still at existing price. |
| Nissan | Up to 3% | Includes Magnite SUV price increase. |
How Buyers Are Affected
Beginning in January 2026, customers who intend to purchase a new car will have to pay more due to these changes. Consumers who want to save money can think about completing purchases before the new prices take effect. Many models may still be less expensive than they were before to GST 2025, providing some leeway for consumers on a tight budget.
While mass-market consumers will experience slight price hikes across Renault, Honda, and MG, luxury shoppers will be affected by pricing changes in brands like Mercedes-Benz and BMW. The pattern of cost revisions is also being followed by EVs like the BYD Sealion 7.
Future Prospects: Industry Trends
In the auto business, yearly pricing adjustments at the beginning of the year are customary, but this year's changes draw attention to more general cost constraints affecting the sector. Although price hikes are slight, analysts point out that they are a reflection of persistent issues with global supply chains and inflation.
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