As the new year approaches, the festive cheer is being tempered by sobering news for prospective car buyers in India. The automotive industry is set to begin 2026 with a wave of price increases, impacting a wide range of vehicles from mass-market models to luxury SUVs. At least six prominent car manufacturers have officially declared that their vehicles will become more expensive starting next January, with more brands expected to follow suit.
Annual Revision Meets Global Economic Pressure
This planned increase is part of the annual price revision that typically occurs at the start of each calendar year. However, automakers are pointing to a confluence of stronger economic headwinds this time around. Companies cite rising input costs driven by increased raw material prices and overall inflation as the primary reasons. Additionally, factors like adverse foreign exchange fluctuations and ongoing global supply chain disruptions are contributing to the decision to adjust prices upwards.
Brand-Wise Breakdown of the 2026 Price Hikes
The announcements cover a spectrum of the market. Honda Cars India has confirmed its entire passenger vehicle range, including popular models like the Amaze, City, and Elevate, will see a price increase. While the exact hike varies by model and variant, it is expected to be up to 2%, effective from January 1, 2026.
In the luxury segment, German giants are leading the increase. Mercedes-Benz will raise prices by up to 2% across its complete portfolio of cars and SUVs from the first day of 2026. The brand has also indicated it is considering more frequent, quarterly price revisions in the future. Similarly, BMW India has announced its vehicles will become costlier by up to 3%, with the revised pricing also taking effect on January 1.
Other manufacturers joining the hike include Nissan, which will increase prices for its Magnite and X-Trail SUVs by up to 3%. MG (JSW MG Motor India) will raise prices for its passenger vehicles by up to 2%. In the electric vehicle space, BYD India has declared its flagship Sealion 7 electric SUV will become pricier from January 1, though it has not disclosed the exact amount. The company is offering a window for buyers, stating that customers who book the vehicle on or before December 31, 2025, will secure it at the current ex-showroom price.
What This Means for Indian Car Buyers
The collective move by these major players signals a tighter economic environment for the automotive sector. For consumers planning a purchase in 2026, budgeting will need to account for these additional costs. The price increments, though seemingly modest in percentage terms, can translate to a significant amount on high-value vehicles, especially in the luxury segment. With more carmakers poised to announce similar hikes, the overall cost of vehicle ownership in India is set to climb as the new year dawns, making advance planning and timely bookings more crucial than ever for cost-conscious buyers.
