As 2025 begins, car prices in India are set to rise across various segments. Major automakers have announced price hikes due to higher input costs, increased operational expenses, and rising transportation charges. Here’s a breakdown of what buyers can expect:
India’s largest carmaker, Maruti Suzuki, plans a 4% price hike across its vehicle range. The exact increase will depend on the model and variant. Maruti’s offerings range from the budget-friendly Alto (starting at ₹3.99 lakh) to the premium Invicto (over ₹30 lakh).
Hyundai will raise prices by ₹25,000 across all its models. The company is also set to launch the eagerly awaited Creta EV, reflecting its efforts to adapt to market demands while expanding its lineup. Creta is one of the top-selling SUV in India and Hyundai is aiming to make a stronger position in the SUV space by the launch of the Creta EV.
Nissan India will increase prices by 2% for its sub-4 metre SUVs. The Magnite Facelift, previously unaffected by price hikes at its launch, will now be included. Nissan’s portfolio, including the flagship X-Trail and export-oriented Magnite, showcases its broad market presence.
Mahindra will implement a 3% price increase across both passenger and commercial vehicle segments, aligning with the broader industry trend. Mahindra is also preparing to commence deliveries for its 2 new EV’s in early 2025.
Kia India will raise prices by up to 2%, citing rising commodity prices and supply chain challenges. This mirrors similar pressures across the industry.
Tata Motors has confirmed a 3% price hike across its entire passenger vehicle lineup, including both internal combustion engine (ICE) models and electric vehicles.
The German luxury carmaker Audi will implement a 3% price hike across its range, including the newly updated Q7 and imported electric models. This move highlights the rising costs affecting even premium brands.
BMW plans a 3% price hike across more than 10 locally manufactured models, as well as its imported electric and high-performance M models. The adjustment reflects increasing costs across its diverse offerings.
Mercedes-Benz has adopted a nuanced approach. Vehicles produced until December 31, 2024, will retain current pricing, but starting January 2025, all models will see up to a 3% increase. Key changes include a ₹2 lakh hike for the GLC-Class and over ₹9 lakh for the ultra-luxurious Maybach S680.
MG Motors will increase prices by up to 3% across its lineup. The company continues to innovate with initiatives like its Battery-as-a-Service (BAAS) program, while adjusting to rising market costs.
Annual price hikes are common in the automotive sector, but 2025’s increases highlight the persistent challenges faced by manufacturers. Rising commodity costs, supply chain disruptions, and operational expenses are driving these adjustments. For prospective buyers, these hikes may encourage reconsidering budgets or advancing purchases to lock in current prices. Despite these challenges, automakers remain committed to innovation, introducing new models like EVs to the market.
