New Delhi: The boom in the car market after the big price hike in GST in September now seems to be gradually cooling down. With the beginning of the new year 2026, buying a car is going to be more expensive than before. At least nine big automobile companies of the country have announced to increase the prices of cars from January. This increase can range from 0.6 percent to 3 percent in different segments. Inflation of raw materials and continuous weakness of rupee are being considered as the major reasons behind these rising prices.
Companies like Hyundai, Honda, Tata Motors, Renault, JSW MG Motor, Nissan, BYD, Mercedes-Benz and BMW have already confirmed the price increase. According to industry sources, some other companies may also take a similar decision soon. Generally, it has been an old tradition of auto companies to increase prices in January after clearing the old stock in December, and the same trend is being repeated in 2026.
The country’s largest passenger vehicle manufacturer Tata Motors is also going to increase prices this January. Shailesh Chandra, MD and CEO of the company’s passenger vehicle business, has clearly said that the prices had not been increased for the last nine months, but now due to the increase in commodity prices, it has become necessary to convey its impact to the customers. Auto companies say that they have already borne the rising costs to a large extent, but beyond a certain point this is no longer possible.
Hyundai Motor India said on December 31 that it will increase prices by an average of 0.6 percent across its entire model portfolio from January 1, 2026. The company has cited the increasing cost of precious metals and other raw materials as the reason behind this. Whereas Renault, which is preparing to re-launch Duster in January, will increase the prices of its cars by about 2 percent. Honda has also confirmed the price increase, although it has not disclosed the percentage.
Luxury car companies are going to be most affected by the rupee’s fall, because their business largely depends on imports. Mercedes-Benz has limited the price increase to 2 percent, while BMW is going to increase the prices by 3 percent. Companies like BYD, which are largely dependent on imports, have also announced to increase prices from January. The euro-rupee rate remained above Rs 100 in 2025 and reached close to Rs 105 by the end of the year, making imports expensive.
Battery cells and rare earth magnets for electric vehicles are almost entirely imported in India. In such a situation, the weakness of the rupee has become a big challenge for EV manufacturers. While Tesla imports Model Y from China, BYD has announced to increase the price of its Celon 7 electric SUV. A senior official of the auto industry says that companies can handle costs to some extent through internal measures, but after a time it becomes a compulsion to increase prices. In such a situation, those buying a new car in 2026 may have to loosen their pockets a little more.
