Car Price Increase January 2026 — Complete Guide for Indian Buyers
As the new year approaches, car buyers in India are facing another reality: the much-anticipated car price increase January 2026. Multiple automakers — from mainstream brands like Honda, Renault and Nissan to premium makers like Mercedes-Benz and BMW — have confirmed price revisions effective 1 January 2026. These changes are largely driven by rising input costs, logistics expenses and currency fluctuations affecting global supply chains.
In this detailed guide, we cover which companies are increasing prices, by how much (where available), which models are affected, and how buyers can make informed decisions before the price rise takes effect.
Why Car Prices Are Increasing in 2026
Automakers typically review pricing at the start of each year, and the car price increase January 2026 trend reflects broader industry pressures:
Rising component and raw material costs
Increased logistics and freight expenses
Currency exchange volatility (especially for imported parts)
Offset of earlier GST-related relief that lowered prices in 2025
These factors have led several manufacturers to announce price hikes, usually ranging from ~2 % to 6 % depending on brand, segment and model.
Confirmed Price Hikes — Brand-Wise Breakdown
1. Honda Cars India
Honda has confirmed a price hike across its range starting January 1, 2026. While the company has not disclosed the exact quantum, models like the Honda Amaze, City and Elevate will become more expensive due to sustained input cost pressures.
Key takeaway:
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Applicable to entire Honda India lineup
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Exact percentage expected to be announced closer to implementation
2. Renault India
Renault has officially announced a price increase of up to 2 % across its vehicle range from January 1, 2026. This applies to popular models including the Kwid, Triber and Kiger — and possibly other future launches. The automaker attributes the revision to rising input costs and macroeconomic factors.
Prices likely affected:
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Renault Kwid
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Renault Triber
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Renault Kiger
3. Nissan India
Nissan Motor India is set to raise prices by up to 3 % from January 1, 2026 across its current lineup, including the Magnite sub-compact SUV. Post-revision, prices of the Magnite could rise by roughly ₹15,000–₹30,000 depending on variant.
Important notes:
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This is part of Nissan’s annual price revision process.
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Price rise applies uniformly across magnite variants.
4. MG Motor India
JSW MG Motor India has indicated a price hike of up to ~2 % across petrol, diesel and electric models effective 1 January 2026. The increase will apply to models such as the MG Hector, MG Astor, MG Comet EV and MG Windsor EV as part of broader cost adjustments.
5. Mercedes-Benz India & BMW
Luxury car brands are also increasing prices:
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Mercedes-Benz India will raise ex-showroom prices by up to ~2 % across its portfolio from January 2026.
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BMW is set to revise prices of both CKD and CBU models with hikes that could be ~up to 6 %, driven by raw material costs and forex pressures.
Why this matters:
Premium buyers should expect significant cash value differences (in ₹ terms) even with moderate percentage increases due to higher base prices.
Expected Price Change Ranges
| Brand | Expected Price Increase | Affected Models |
|---|---|---|
| Honda | ~1–2 % (estimate) | Amaze, City, Elevate |
| Renault | Up to ~2 % | Kwid, Triber, Kiger |
| Nissan | Up to ~3 % | Magnite |
| MG Motor | Up to ~2 % | Hector, Astor, Comet EV, Windsor EV |
| Mercedes-Benz | Up to ~2 %+ | Entire lineup |
| BMW | Up to ~6 % | Entire lineup |
(Percentages are approximate and based on brand disclosures and industry reporting.)
What Buyers Should Know
Prices Valid Until December 31, 2025
Current prices on many models will remain effective only until the end of December 2025. Booking before January can help lock in lower ex-showroom costs and potentially avoid part of the hike.
GST Effects Still Favourable
Despite the upcoming hike, prices for many cars may still be lower than pre-GST era levels, offering long-term value for buyers.
Luxury Markets See Larger Cash Differences
Small percentage hikes (2–6%) translate to significant ₹ increases on premium models, making early purchases attractive for buyers eyeing Mercedes-Benz and BMW.
Timing Your Purchase — Now vs January 2026
Buy Before December 31, 2025
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Lock in current prices
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Avoid part of the hike on mainstream and premium models
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Take advantage of year-end incentives where available
Buy After January 1, 2026
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Expect higher on-road pricing due to car price increase January 2026
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Luxury buyers particularly affected due to larger percentage hikes
Industry analysts and buyers are actively debating whether it’s better to book now or wait for new model updates, but financially, buying before price hikes is usually more economical.
FAQs — Car Price Increase January 2026
1) Why is there a car price increase from January 2026?
Most automakers attribute the revision to rising input costs, logistics expenses and fluctuating currency rates affecting the auto industry.
2) Which car brands have confirmed price hikes from January 1, 2026?
Confirmed brands include Honda Cars India, Renault India, Nissan Motor India, MG Motor India, Mercedes-Benz and BMW among others.
3) How much will prices go up?
Price increases generally range from ~2 % to 6 %, varying by brand and model. Luxury brands like BMW may see higher adjustments.
4) Will electric cars also become more expensive?
Yes — brands like MG Motor and others will include electric models in their price revisions starting January 2026.
5) Should I buy before January or after?
From a cost-saving perspective, buying before 31 December 2025 ensures you avoid the new car price increase January 2026 and lock in current prices.
Also Read:
Mahindra XUV 7XO and Renault Duster 2026 Launch: Two Blockbuster SUV Launches You Can’t Miss
Source: AutoCarIndia
Final Thoughts
The car price increase January 2026 marks a strategic shift for buyers planning new car purchases in India. With several automakers increasing prices across segments — from entry-level hatchbacks and compact SUVs to luxury sedans and premium SUVs — potential buyers should act before year-end to secure lower pricing and avoid paying the revised price from January 1 onwards.
Stay tuned to Grand Auto World for updated ex-showroom price lists, variant-wise price comparisons and launch news for new models in 2026 as the automotive landscape evolves rapidly.