New Year, New Price Tags? Carmakers Signal Changes from January 2026

As the calendar turns to 2026, car buyers in India are bracing for another round of price hikes, with several automakers confirming revisions across their portfolios from January 1. The increases, largely modest in nature, are aimed at partially offsetting the GST-related relief customers benefited from earlier in 2025, even as manufacturers grapple with rising input costs, higher logistics expenses and sustained currency volatility, as per industry observers.

Annual price revisions at the start of the year have become a standard industry practice, and 2026 is no exception. Automakers including JSW MG Motor India, Renault, Honda, Nissan, BYD India, Mercedes-Benz and BMW have either announced or signalled hikes ranging between 1% and 4%, depending on the brand, model and variant.

JSW MG Motor India has announced a marginal price hike of up to 2% across its product range, effective January 1, 2026. The company said the increase will vary by model and variant and is driven by rising input costs and broader macroeconomic factors.

Renault India has also confirmed a price hike of up to 2% across its lineup—Kwid, Triber and Kiger—from January. “The price increase will vary across models and variants and has been necessitated by rising input costs and prevailing macroeconomic factors,” the company said, adding that it remains committed to offering a compelling value proposition to customers.

Honda Cars India has announced a price hike across its range from January 2026, although it is yet to disclose the quantum. The automaker cited rising costs of materials, logistics and operations as the key reasons. Honda currently sells the Amaze, City, City Hybrid and Elevate SUV, and is also expected to introduce an updated City facelift next year to support sales momentum.

Also Read: India Auto Sales Accelerate in November 2025 as GST Cut, Festive Demand Boost Carmakers | Republic World

Nissan will raise prices of its models by up to 3% from January 1, 2026. The Magnite, its sole offering in India, currently starts at Rs 5.62 lakh (ex-showroom) and is expected to become costlier by around Rs 32,000.

Electric vehicle maker BYD India has announced a price hike for the BYD SEALION 7 from January 1, 2026, while offering price protection to customers booking the vehicle by December 31, 2025. The SEALION 7 Performance is currently priced at Rs 54.9 lakh and the Premium variant at Rs 48.9 lakh (ex-showroom). 

Luxury carmakers are feeling sharper forex pain. Mercedes-Benz India has already announced a price hike of up to 2% from January 1, 2026, citing the euro-rupee exchange rate consistently remaining above ₹100 in 2025. Managing Director and CEO Santosh Iyer said the company is even considering quarterly price hikes next year “because of rupee devaluation to euro,” to absorb the “huge depreciation.” BMW India, which raised prices by up to 3% in September 2025, plans another hike from January. “Pressure from forex due to Indian Rupee’s sharp depreciation against US dollar and Euro has not eased,” said Hardeep Singh Brar, President and CEO, BMW Group India.

According to Puneet Gupta, Director at S&P Global Mobility, price hikes are traditionally announced at the start of the year to offset inflation and higher input costs. However, he noted, “This year presents a distinctly different backdrop… In this environment, some manufacturers may choose to defer price increases to February, prioritising demand momentum and market sentiment over an immediate January revision.”