Will car prices increase again? There may be a stir in the auto market as soon as GST exemption ends

The prices of vehicles are continuously increasing in the Indian auto market in the year 2026. Sometimes SUVs are becoming expensive and sometimes the prices of small family cars are going up. Now news is coming that due to end of GST exemption and increasing cost, buying a car may become more expensive in the coming months. In such a situation, the common man is left wondering why car companies are increasing prices again and again.

Rising inflation increases tension of auto companies

Car manufacturing companies are under immense pressure these days. The prices of raw materials like steel, aluminium, plastic and electronic parts are continuously increasing. On top of this, ongoing tensions and supply chain problems around the world have further increased the costs of companies. This is the reason why companies are gradually increasing the prices of their models. In vernacular, “car making is no longer as cheap a game as it used to be.”

Direct impact of ending GST relief will be visible

After the government’s GST 2.0 policy in 2025, many vehicles got tax relief, due to which there was a huge jump in car sales. But now many experts believe that this relief will not last long. If GST exemption ends, companies can pass the burden directly on customers. This means that the car which is available for Rs 10 lakh today may become more expensive after a few months.

SUVs and family cars will be most affected

These days the demand for SUV segment is highest. For this reason, companies are increasing the prices of these vehicles rapidly. Recently many big companies have increased the prices of their SUV and MPV vehicles by 2 to 3 percent. The upcoming 7-seater cars for large families may also be affected. Even small cars, which are preferred in villages and towns, are now in line to become expensive.

Why are companies increasing prices again and again?

Auto companies say that due to rising costs and weak supply chain, increasing prices has become a compulsion. Many companies are now increasing local manufacturing to reduce dependence on countries like China. However, this is increasing the initial expenses further. This is why new prices are coming out every few months.

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Is it better to buy a car now or wait?

If you are planning to buy a new car then waiting too long can prove costly. Experts believe that there may be another rise in the prices of vehicles in the coming months. Especially the prices of SUV, hybrid and premium cars may increase rapidly. In such a situation, the formula “Today’s booking, tomorrow’s benefit” can prove to be right for you.