Carmakers are lining up their annual New Year price increases, partially offsetting the GST relief buyers enjoyed earlier this year. The hikes, which typically arrive at the start of every calendar year, will come into effect on January 1, 2026.
The upcoming hikes are modest and mainly reflect higher input and currency costs. Below is a quick look at manufacturers that have confirmed increases so far.
Mercedes-Benz
Mercedes-Benz will increase ex-showroom prices by up to 2 percent across its line-up from January 1, 2026. The brand points to higher input and logistics costs and an unfavourable euro-rupee exchange rate. Mercedes is also evaluating quarterly revisions to better manage currency swings.
A 2 percent hike would add about Rs 2.64 lakh-2.68 lakh to the GLS prices, which is way lower than the post-GST 2.0 reduction of Rs 9.4 lakh-9.6 lakh, and about Rs 1.57 lakh-1.83 lakh to the E-Class prices, which, too, is well below the Rs 4.5 lakh-5.25 lakh price cut.
BMW
BMW, which already raised prices by up to 3 percent in September 2025, will implement another hike on January 1, 2026. The brand attributes this to higher material and logistics costs and the depreciating Indian rupee impacting foreign exchange. The revision covers both CKD and CBU models.
A 3 percent hike adds Rs 1.81 lakh-1.85 lakh to the 3 Series prices, which is still less than the earlier cuts of Rs 3.45 lakh-3.55 lakh.
BYD
BYD will increase prices for the Sealion 7 from January 1, 2026. Customers booking before December 31 will continue to get the current price. The company has not disclosed the reason for the revision or the extent of the increase.
MG Motor
MG will increase prices by up to 2 percent from January 1, 2026. The company says the revision is due to rising input and manufacturing costs, along with broader macroeconomic pressures. The hike will apply across its petrol, diesel and electric models.
The MG Windsor EV is expected to see a price increase of Rs 30,000 to Rs 37,000, which would take its ex-showroom range to Rs 14.27 lakh-18.76 lakh. The Comet EV’s prices are likely to go up by Rs 10,000-20,000 to Rs 7.64 lakh-10.19 lakh.
Nissan
Nissan will raise prices by up to 3 percent from January 2026. The announcement comes ahead of the introduction of the Gravite compact MPV, which is expected in showrooms by March 2026.
Earlier this year, the Nissan Magnite received a price cut of Rs 52,000 to Rs 1 lakh thanks to a lower GST rate, and it currently ranges from Rs 5.62 lakh to Rs 10.76 lakh. From January, prices are expected to rise by Rs 17,000-32,000 to Rs 5.79 lakh-11.08 lakh.
Honda
Honda will revise prices from January 2026. The company says the increase is due to sustained input cost pressures. The exact percentage change has not been announced yet.
The GST reforms this year led to large price cuts across the board, with BMW models dropping by up to Rs 13.6 lakh and some Mercedes-Benz models by up to Rs 25 lakh. Even after the upcoming hikes in January, prices of most models would remain below their pre-GST levels.
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