New Delhi, March 23 : Beginning April 2025, most major automobile companies in India are set to increase the prices of their cars. Faced with rising production and operational costs, leading automakers including Maruti Suzuki, Mahindra & Mahindra, Hyundai, Tata Motors, and others have announced plans to hike vehicle prices across various models.
Maruti Suzuki India, the country’s largest passenger car manufacturer, has stated that it will increase prices of its entire range of models by up to four percent starting next month. The company’s offerings span from the entry-level Alto K10 to the premium multi-purpose vehicle Invicto, priced between Rs 4.23 lakh and Rs 29.22 lakh (ex-showroom, Delhi).
Hyundai Motor India, a key competitor of Maruti, has also confirmed a price hike of up to three percent from April 2025. The company cited increased raw material and operating costs as primary reasons for the decision.
Tata Motors is also set to raise prices across all its passenger vehicles, including electric models, making this the second price revision announced by the company in 2025. Similarly, Mahindra & Mahindra plans to increase the prices of its SUVs and commercial vehicles by up to three percent starting April.
Other manufacturers including Kia India, Honda Cars India, Renault India, and BMW have also announced price hikes across their lineups from next month.
As per agency report, Deloitte Partner and Automotive Sector Leader Rajat Mahajan explained that carmakers in India typically raise prices twice a year—once at the beginning of the calendar year and again at the start of the fiscal year. He noted that the extent of the hike often depends on currency fluctuations, as importing components becomes costlier when the Indian rupee weakens against the US dollar. Over the past six months, the rupee has depreciated by approximately three percent against the dollar, impacting sectors that rely heavily on imports.
Mahajan added that declining demand for entry-level vehicles, especially among first-time buyers and rural consumers, has further pressured automakers’ profit margins. With consistent additions of new features in vehicles, production costs have been steadily rising, prompting companies to adjust prices accordingly.
He emphasized that original equipment manufacturers (OEMs) are mindful of the price-sensitive nature of the entry-level segment and usually exercise caution when raising prices in this category.
Rohan Kanwar Gupta, Vice President and Sector Head at ICRA Corporate Ratings, stated that such price hikes are commonly implemented at the start of a new calendar or fiscal year to help offset inflationary pressures and increased operational costs due to rising commodity prices.
