Car Price Hike: Maruti, Tata, Hyundai, and More Raise Prices (Raised Prices)

Customers planning to buy a car in the financial year 2025-26 have been hit with a big shock. Nearly all major car manufacturers in India have raised the prices of their vehicles.

This marks the second price hike within a few months, following an increase in January 2025.

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Price hikes at the beginning of the year are common as companies aim to clear old stock before the new year.

However, this time, the price hikes have come despite declining sales, and there are several reasons behind the increase.

Why Have Car Companies Increased Prices?

  1. The cost of parts and production for manufacturing vehicles has risen.

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  2. The weakening of the rupee against the dollar has increased the cost of importing raw materials.

  3. Aluminium prices have gone up by 10.6%, while rubber prices have risen by 27%, further increasing production costs.

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  4. Higher fuel and transportation costs have added to the overall cost of production.

  5. Companies like BMW and Hyundai face higher expenses due to the import of CKD and CBU models.

  6. International factors, including tariffs imposed by former U.S. President Donald Trump, have affected the supply of components.

  7. Companies are finding it difficult to bear the increased costs, which has led them to raise prices.

Despite these increases, car manufacturers claim that the price hikes are balanced to minimize the impact on sales and customers.

Which Car Companies Have Raised Prices?

Car BrandPrice Hike
Maruti SuzukiUp to 4%
Tata MotorsUp to 3%
MahindraUp to 3%
KiaUp to 3%
SkodaUp to 3%
MG MotorUp to 2%
Stellantis (Jeep + Citroën)Up to 2%
Mercedes-BenzUp to 3%
BMWUp to 3%
HyundaiUp to 3%
AudiUp to 3%
Honda CarsNot clear yet

Discounts on Entry-Level Cars Offer Some Relief

The price increase comes at a time when sales of entry-level cars are experiencing a significant decline.

According to the Federation of Automobile Dealers Association (FADA), passenger vehicle sales have dropped by 7.8% year-on-year.

Rural markets are the hardest hit, with customers avoiding car purchases due to inflation.

To clear their stock, dealers are offering various discounts like cash discounts, exchange bonuses, corporate discounts, and scrappage bonuses. These discounts range from ₹2,500 to ₹75,000, depending on the model.

Which Brands Are Offering Discounts?

Several brands are offering discounts across different models, with Maruti Suzuki providing the highest discounts, including on vehicles like the S-Presso and Baleno.

Honda is offering up to ₹73,000 in benefits on its City model.

Mahindra & Mahindra (M&M) is also providing discounts, with its Thar Roxx in high demand. The company is offering exchange offers up to ₹3 lakh and additional benefits on FY2024 models.

These discounts, along with the recent changes in income tax slabs, might provide some relief to India’s struggling entry-level car market.

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