Auto companies to increase prices in India in 2026: Mercedes-Benz, BMW, JSW MG and BYD

Ankita Jain,

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Several auto companies including Mercedes-Benz, BMW, MG Motor and BYD will increase car prices in India from January 1, 2026, citing rupee depreciation, higher input costs and rising logistics expenses across sectors.

By CNBC-TV 18 December 23, 2025, 7:01:39 PM IST (published)

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Mercedes-Benz Hike: Mercedes-Benz India has confirmed a price increase of up to 2% across its entire portfolio from January 1, 2026. The revisions include sedans, SUVs and performance models in the ICE and EV line-up. The company cited continued euro-rupee volatility, rising input and operating costs and around 10% depreciation of the rupee in 2025 as the key reasons. Current prices will remain intact for bookings made before December 31, 2025.

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BMW Modifications: BMW India will increase vehicle prices by up to 3% from January 1, 2026, affecting its sedan, SUV and performance car ranges. This step has been taken after the sharp fall of rupee against euro and increase in import related costs. This comes after a 3% hike in September 2025. The entry-level model may see a lesser increase, while the premium variant is expected to attract a full revision.

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JSW MG Motor Update: JSW MG Motor India has announced price hike of up to 2% across its ICE and EV portfolio from January 1, 2026. This increase varies by model and variant, with lower trims seeing smaller changes. MG cited high raw material costs and macroeconomic pressures. Customers who book the vehicle till December 31, 2025, will continue to get the existing ex-showroom prices.

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BYD Pricing: BYD India has confirmed a price increase for the Clian 7 electric SUV from January 1, 2026. Buyers booking the model by December 31, 2025, will be protected from the increase. Offered in Premium and Performance variants, the Sealion 7 has sold over 2,000 units since its launch. The company linked the revision to cost pressures as it continued its dealership expansion.

With a market capitalization of $48 billion (Rs 4 lakh crore), Tata Motors overtook Maruti Suzuki to take the number one spot in the list of India's largest car companies. Currently, Maruti Suzuki has a market capitalization of $47.6 billion, which is $1.5 billion less than Tata Motors. Interestingly, after Maruti Suzuki took the top spot at the beginning of the year, Tata regained the top spot after about six months.

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Domestic signs: Among domestic manufacturers, Tata Motors has indicated plans to hike prices in the fourth quarter, while market sources suggest Mahindra & Mahindra may revise up as early as 2026. Maruti Suzuki and Hyundai India, which account for more than half the passenger vehicle market, have not announced any price changes yet. Volvo is also expected to revise prices during the same period.

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market Outlook: Industry analysts attribute the upcoming price hike to higher costs of steel, aluminium, electronics and batteries as well as rupee depreciation affecting imported components. Despite incremental growth, demand has remained stagnant. VAHAN data shows passenger vehicle registrations have increased by 14% year-on-year. Analysts expect growth momentum in the sector to continue in FY26 even as producers adjust prices to protect margins.

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