Buying a new car in India will become more expensive in 2026. Several leading automakers have officially confirmed price hikes starting January 1, 2026, impacting both budget-friendly cars and luxury vehicles. Brands such as BMW, Mercedes-Benz, BYD, Nissan, Honda, and MG Motor have announced increases ranging from 2% to as high as 6%.

These price hikes come at a time when manufacturers are facing continued pressure from rising raw material costs, higher logistics expenses, and unfavourable currency exchange rates.

Why Are Car Prices Increasing in 2026?

Car manufacturers across India are dealing with rising costs on multiple fronts. Raw materials such as steel, aluminium, and electronic components have become more expensive. Logistics and transportation costs remain high, while the depreciation of the Indian rupee against the US dollar and euro has increased import-related expenses.

Although many automakers absorbed these costs for months to protect buyers, the sustained pressure has made price revisions unavoidable.

Mercedes-Benz Car Price Hike in 2026

Mercedes-Benz has confirmed that prices across its entire model lineup will increase by up to 2% from January 1, 2026. This follows a higher price hike of up to 3% last year.

The company attributes the increase to rising raw material and logistics costs. Another major factor is the euro-rupee exchange rate, which has remained above ₹100 for most of the year, increasing operational expenses.

Mercedes-Benz has also hinted that it may introduce quarterly price revisions if currency fluctuations continue.

BMW to Lead Car Price Hikes in 2026

BMW will implement the highest price hike among all confirmed brands, with prices increasing by up to 6% starting January 1, 2026.

The luxury carmaker has pointed to the sharp depreciation of the Indian rupee against major foreign currencies, along with rising raw material and logistics costs. BMW states that the hike is necessary to maintain profitability and ensure long-term value for both customers and dealer partners.

For buyers, delaying a BMW purchase into 2026 could mean paying several lakhs more, depending on the model.

BYD Car Prices Set to Rise in 2026

BYD India has announced a price hike for its electric SUV, the Sealion 7, effective January 1, 2026. Customers who book before the hike will still be able to purchase the vehicle at current prices.

The BYD Sealion 7 is available in two variants:

• Premium – ₹48.90 lakh (ex-showroom)
• Performance – ₹54.90 lakh (ex-showroom)

Both versions feature an 82.56 kWh battery pack, offering a claimed driving range of up to 567 km.

Nissan Cars to Get Costlier from January 2026

Nissan has confirmed that prices across its range will increase by up to 3% starting January 1, 2026. This is higher than the 2% hike announced last year.

According to the company, rising input costs and unfavourable exchange rates are the main reasons behind the decision.

Nissan is also preparing to launch new models in early 2026, including the Gravite in January and the Tekton in February.

Honda Confirms Car Price Increase for 2026

Honda has confirmed that its car prices will increase in 2026, though the exact percentage has not yet been revealed. Based on previous trends, the hike is expected to be between 2% and 3%.

The company cites higher costs for raw materials, logistics, and supplier components as the key reasons. Popular models like the Honda Elevate are likely to be affected.

MG Motor Price Hike Announced for 2026

MG Motor India has announced a price increase of up to 2% across its entire model lineup starting January 1, 2026.

This follows a price hike of up to 3% last year. MG says rising input costs and broader macroeconomic pressures have led to the decision.

Summary of Car Price Hikes in 2026

From mass-market brands to luxury carmakers, 2026 will see widespread price increases across the Indian auto industry. BMW will lead with the highest hike of up to 6%, while brands like Mercedes-Benz, MG, and Nissan will implement smaller but still significant increases.

For buyers planning to purchase a new car, booking before the end of 2025 could help avoid higher prices and take advantage of year-end offers.

Frequently Asked Questions

When will car prices increase in India in 2026?
Most automakers have confirmed that new prices will take effect from January 1, 2026.

Which car brand has announced the highest price hike?
BMW has announced the highest hike so far, with prices increasing by up to 6%.

Will budget cars also get more expensive in 2026?
Yes, brands like Nissan, Honda, and MG have confirmed price hikes, affecting mass-market vehicles as well.

Are electric cars affected by the 2026 price hike?
Yes, BYD has confirmed a price increase for its electric SUV, the Sealion 7.

Should I buy a car before January 2026?
Buying before the price hike takes effect could help you save money and benefit from current prices and discounts.

Are these price hikes due to new government rules?
No, the increases are mainly due to higher input costs, logistics expenses, and currency exchange pressures.