The new year has brought bad news for people planning to buy a car. From January 1, 2026 many major automobile companies in India have increased the prices of their vehicle, making cars more expensive than before. this price hike is not limited to luxury cars. Even entry-level and mid-range models have become costlier, which will affect a large number of buyers. Companies have taken this step because of rising production costs and global market pressure. As a result, customers will now have to spend more money to buy the same car they could get cheaper earlier.
Prices of these cars will increase
Several carmakers have announced price hikes from January 2026. Mercedes-Benzes India has raised the prices of models like the C-Class, E-Class, GLC and GLE by up to 2 percent. BMW has also increased the prices of the 3 series, X1, X3 and 5 series by around 2 percent. Electric car maker BYD will raise prices of Atto 3 and seal though the exact increase prices of hector, Astor, comet ev and zs ev by up to 2 percent. Nissan has raised magnate prices by up to 3 percent, while Renault increased kwid, triber and kiger prices by up to 2 percent. Hyundai raised prices slightly by about 0.6 percent, on models like creta, venue, verna and i20. Honda will also revise prices of city and amaze.
Auto companies have explained that the rise in car prices is due to several cost pressures. the price of raw materials have gone up, while logistics and transportation expenses have also increased. In Addition, changes in foreign exchange rates have made production more expensive. because of all these factors, the overall cost of making cars has risen sharply. Companies say they tried for a long time to absorb these higher costs on their own and not pass them on to customers. However, the pressure has now become too high, so they had no option but to increase vehicle prices.
The higher car prices may change how customers make their buying decisions. Many people might delay their purchase or look for cheaper options instead of buying immediately. Experts believe that demand could slow down slightly in the first few months of the year because of the price hike. however, this impact is expected to be short term. As the festive season approaches, the market is likely to pick up again, with more people returning to showrooms and car sales improving despite the higher prices.
