Carmakers confirm modest 2026 price hikes, though GST cuts still benefit buyers
Several car manufacturers operating in India have confirmed price increases that will come into effect from 1 January 2026. These revisions mark the return of routine New Year price adjustments, a practice common across the industry. The upcoming hikes are relatively moderate and are largely attributed to higher input costs, logistics expenses and currency-related pressures.
Importantly, the increases follow significant GST-led price reductions announced earlier in 2025. Even after the January 2026 revisions, prices of many models are expected to remain lower than their pre-GST levels, softening the overall impact on buyers.
Below is an overview of carmakers that have announced price hikes so far.
Mercedes-Benz
Mercedes-Benz will increase ex-showroom prices by up to 2 percent across its range from January 1, 2026. The company has cited rising input and logistics costs, along with currency fluctuations, as key reasons. It is also considering more frequent price revisions in the future to better manage exchange rate volatility.
Even with the hike, flagship models such as the GLS and E-Class will still cost significantly less than they did before the GST revision earlier this year.
BMW
BMW has confirmed another price revision from January 2026, after already raising prices by up to 3 percent in September 2025. The automaker attributes the increase to higher material costs, logistics expenses and the weakening rupee. The hike will apply to both CKD and CBU models.
Despite the revision, several BMW models will continue to be priced well below their earlier levels following the GST reduction.
BYD
BYD has announced a price increase for the Sealion 7, effective January 1, 2026. Customers who complete their bookings before the end of December 2025 will continue to receive the current pricing. The company has not shared details regarding the quantum or reason for the increase.
MG Motor
MG Motor will raise prices by up to 2 percent across its portfolio starting January 2026. The company has pointed to rising manufacturing and input costs, along with broader macroeconomic challenges.
Among its electric vehicles, the Windsor EV is expected to see a price increase of around Rs. 30,000 – 37,000, while the Comet EV may get a smaller hike in the range of Rs. 10,000 – 20,000.
Nissan
Nissan will increase prices by up to 3 percent from January 2026. This announcement comes ahead of the brand’s upcoming product activity, including the launch of the Gravite MPV expected by March 2026.
Earlier in 2025, the Magnite benefited from a substantial GST-led price cut. Even after the upcoming hike, the compact SUV’s pricing is expected to remain competitive compared to its earlier levels.
Honda
Honda has confirmed a price revision effective January 2026, citing ongoing input cost pressures. However, the company has not yet disclosed the extent of the increase or model-wise details.
Renault
Renault will implement a price hike of up to 2 percent across its India lineup from January 1, 2026. The increase will vary across the Kwid, Triber and Kiger. Updated pricing is expected to remain within the affordable end of their respective segments.
Renault has also confirmed plans to expand its India portfolio in 2026 with new launches, including the return of the Duster and a new seven-seater SUV.
GST cuts continue to offset hikes
The GST reforms introduced earlier this year resulted in substantial price reductions across multiple brands, with some BMW models becoming cheaper by over Rs. 13 lakh and certain Mercedes-Benz models seeing cuts of up to Rs. 25 lakh. Even after the January 2026 price revisions, most vehicles are expected to remain below their pre-GST pricing, ensuring that buyers continue to benefit overall.