Car Prices to Jump in January 2026: Automakers Blame Rising Costs, Rupee Depreciation

• Nine major automakers, including Hyundai, Honda, Tata Motors, Mercedes-Benz, and BMW, will raise car prices by up to 3% from January 2026.
• The price hikes are attributed to escalating input costs and the significant depreciation of the Indian rupee against major global currencies like the Euro and Chinese Yuan.
• Luxury car brands and electric vehicle manufacturers, heavily reliant on imports for components like EV battery cells, face the maximum impact.
• Hyundai announced a 0.6% hike, Renault about 2%, Mercedes-Benz up to 2%, and BMW up to 3%, with other manufacturers also considering increases.
• Automakers state they can no longer absorb rising commodity prices and currency fluctuations, making new cars costlier for consumers.

Why It Matters: New car buyers face higher prices from January 2026 due to rising costs and a weakening rupee.