Car prices hiked from April 2026

As the new financial year kicks off, car buyers across India are once again facing higher prices, with leading automakers announcing revisions across their portfolios. Companies including Tata Motors, Mahindra & Mahindra, Audi, Mercedes-Benz, and MG Motor have implemented price hikes starting April 2026, impacting both entry-level and premium vehicles.

The latest round of price increases has been largely attributed to rising input costs. Automakers are grappling with higher prices of essential raw materials such as steel, along with increased expenses in electronics and logistics. Additionally, fluctuations in currency exchange rates have added to the burden. Since a significant number of vehicle components are imported, a weaker Indian rupee against global currencies like the euro has made production more expensive.

Luxury carmakers have introduced noticeable price adjustments. Audi has raised prices by up to 2 % across its entire lineup, marking its first hike this year. Meanwhile, Mercedes-Benz has implemented a similar increase of around 2 %, following an earlier revision in January. These brands are particularly sensitive to currency movements due to their reliance on imported components.

In the mass-market category, Tata Motors has introduced a relatively smaller hike of about 0.5 % on its petrol, diesel, and CNG vehicles. Notably, its electric vehicle lineup remains unaffected, potentially making EVs a more appealing option for cost-conscious buyers.

MG Motor has also revised prices upward by up to 2 % for popular models such as the Hector, Astor, and ZS EV. However, its premium offerings under the MG Select range, including the Cyberster and M9 EV, have been spared from this round of increases.

Similarly, Mahindra & Mahindra has announced a hike of up to 2.5 %, with an average increase of around 1.6 % across its SUV and commercial vehicle lineup. The company has offered limited relief to early buyers of the newly introduced XUV7XO, stating that prices for this model will only be revised after the first 40,000 bookings are fulfilled.

Price hikes at the beginning of the financial year are a recurring trend in the automotive industry. Even marginal increases of 1-2% can significantly raise the final on-road cost for buyers. With ongoing global uncertainties, evolving technology, and sustained demand, further revisions in car prices are likely in the months ahead.