If you have been eyeing a new SUV for the new year, you might want to finalise your purchase before the clock strikes midnight on December 31, 2025. Several leading automobile manufacturers have officially confirmed that they will implement annual price revisions across their model line-ups effective January 1, 2026. This move, attributed to rising input costs, logistics challenges, and adverse currency fluctuations, will make popular SUVs slightly more expensive.
Why Are Car Prices Increasing in 2026?
The industry-wide price adjustment, while modest, comes after a year that saw significant price corrections due to GST reforms. Carmakers state that sustained pressures from higher material costs, increased logistics expenses, and an unfavourable foreign exchange rate have necessitated this step. It is important to note that despite the upcoming hikes, most vehicles will still be priced below their pre-GST levels, offering some consolation to buyers.
List of SUVs That Will Cost More
Here is a detailed look at seven popular SUVs across segments that are confirmed to become more expensive at the start of 2026.
1. Honda Elevate
Honda has announced a price revision across its entire model range from January next year, which includes the well-received mid-size SUV, the Elevate. Although the exact increase has not been disclosed, the company cites ongoing cost pressures in manufacturing and parts sourcing as the key reason. The Elevate, a strong seller for Honda, is expected to see a marginal price uptick.
2. MG Hector
MG Motor India will increase prices by up to 2 per cent on its portfolio from the first day of 2026. The brand's flagship and most popular model, the Hector SUV, will be part of this revision. The hike, driven by rising input costs and broader macroeconomic factors, will apply to all powertrain options—petrol, diesel, and electric.
3. Mercedes-Benz GLA
The German luxury carmaker, Mercedes-Benz, has declared a price increase of up to 2 per cent for its Indian line-up. The company points to escalated logistics costs and the euro-rupee exchange rate as primary drivers. The GLA, its entry-level luxury SUV, will also see a revision, though Mercedes emphasises that post-hike prices will remain favourable compared to pre-GST era figures.
4. BMW X1
BMW is set for another round of price hikes starting January 1, 2026, following an earlier increase in September 2025. The popular compact luxury SUV, the X1, will be affected. BMW attributes this decision to climbing material costs and ongoing currency-related pressures. The revision will impact both locally assembled (CKD) and fully imported (CBU) models.
5. Nissan Magnite
Nissan has confirmed a price increase of up to 3 per cent from January 2026. The Magnite compact SUV, which benefited from a substantial price reduction earlier this year due to GST changes, will see a partial rollback of those cuts. Despite the hike, Nissan expects the Magnite to retain its competitive positioning within the budget SUV segment.
6. Renault Kiger
Renault will raise prices by up to 2 per cent across its range, which includes the Kiger compact SUV. The increase will vary depending on the variant. In related news, Renault has also confirmed plans to expand its Indian portfolio in the coming year with new SUV launches, including the much-anticipated return of the Duster.
7. BYD Sealion 7
Electric vehicle specialist BYD has announced a price revision for its Sealion 7 electric SUV from January 2026. While the company has not shared the quantum or specific reasons for the increase, it has offered a clear incentive: customers who book the SUV before December 31, 2025, will be shielded from the upcoming price hike.
What Should Buyers Do?
The impending price revisions, though described as modest by the industry, are a signal for prospective buyers to act. If you are considering any of the aforementioned models, booking your vehicle before the end of 2025 could result in significant savings by locking in the current ex-showroom prices. Final prices will, as always, vary based on the variant and the city of purchase, with official updated figures expected to be announced closer to the new year.
