Citing persistent inflationary pressures and rising commodity costs, carmakers have continued to raise vehicle prices. For the second time in three months, Maruti Suzuki India (MSIL), the country's largest carmaker, will increase prices across its models.
The company on Tuesday announced a price increase of up to Rs 30,000 across its vehicle range, effective August 2026. The exact quantum of change will vary from model to model. MSIL had implemented a similar hike of up to Rs 30,000 in June.
The company said that for the past few months, it has been making continuous efforts to mitigate the cost impact to the extent possible through cost reduction measures.
“However, with inflationary burdens now at elevated levels and the adverse cost environment continuing, the Company is constrained to pass on a portion of the increased costs to the market, while continuing to ensure that the impact on customers is kept to the minimum extent possible,” said MSIL in an exchange filing.
Earlier this month, Mahindra & Mahindra announced an average price increase of 2.7% on its sports utility vehicles (SUVs) and 2% on its Commercial Vehicle (CV) range, effective July 10, 2026. Mahindra had attributed the price increase to commodity cost escalations.
Not only Mahindra, but other carmakers have also gone for multiple price hikes in recent times. Major luxury carmakers such as BMW and Mercedes-Benz India continue to revise their prices every quarter due to rupee devaluation.
The price hikes, however, have had a limited impact on car sales so far. Domestic passenger vehicle dispatches from manufacturers to dealers touched an all-time high of 1,273,811 units in the first quarter of FY27, rising 25.9% year-on-year, as per SIAM data.
Among mass market brands, Kia India increased prices by up to 2% across its model range, effective 1st July 2026.
Tata Motors Passenger Vehicles (TMPV) last month decided to increase prices of its four-wheelers for the second time in a span of three months. “While TMPV continues to absorb a significant portion of these increases, a part of the impact is being passed on to customers through this adjustment. The extent of the price increase will vary across models and variants, ensuring that the overall value proposition of each offering is maintained,” said TMPV in a statement. Hyundai Motor India also increased vehicle prices by up to Rs 12,800 from June.
According to industry sources, prices of essential commodities such as steel, plastic and other metals have surged sharply since early March when the West Asia war broke out. Steel, non-ferrous metals and plastic prices have surged between 10-30% in the last one year.