Car Price Hike 2026: The beginning of the new year may prove costly for Indian automobile customers. People planning to buy cars and two-wheelers from January 2026 may have to shell out more. The main reasons for this are said to be the rising prices of raw materials and the weakness of the rupee. Auto companies are now preparing to pass the burden of rising costs on to customers, due to which the increase in prices is considered certain.
Inflation of raw materials increased concern
The prices of precious metals like copper, aluminium, platinum, palladium and rhodium used in the auto industry have seen a sharp rise in the last few months. According to ETIG data, in the eight months till November, the average price of platinum has increased by about 36 percent and the price of palladium by 19 percent. Whereas the price of copper has increased by 6 percent and that of aluminum has increased by 3 percent. Since a large part of these metals is imported, the cost of production has increased further due to the weakening of the rupee.
How much can car prices increase?
Market experts believe that car companies usually revise prices at the beginning of every year and 2026 will be no exception. It is estimated that car prices may increase by an average of 3 percent from January. However, due to tough competition in the auto sector, companies can increase prices only within a limited range. Strong bookings and better demand in the coming months are also considered a major reason for increasing the prices.
These companies announced price increase
Many major auto companies have already announced price increases. JSW MG Motor India has said that it will increase the prices of all its models by about 2 percent from January 1. At the same time, BMW Motorrad India has announced an increase in the prices of its motorcycles by 6 percent from January 1. Luxury car manufacturer Mercedes-Benz India is also going to increase the prices of all its models by 2 percent from January 1.
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Two-wheelers and electric scooters will also not be saved.
The impact of inflation will not be limited to cars only. Electric scooter maker Ather Energy has also said it will increase the prices of all its models by ₹3,000 from next month. The company has cited rising cost of raw materials, fluctuations in foreign exchange and inflation of electronic parts as the reasons behind this. Other two-wheeler and EV companies may also increase prices in the coming times.
What is your advice to customers?
If you are planning to buy a new car or bike, it may be beneficial to take the decision before the prices rise. You may have to pay more if you buy a vehicle after January.
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