<p>Bengaluru: Forex pressures and other macroeconomic compulsions, especially rising raw material costs, have prompted automakers across segments to increase vehicle prices between 2 per cent and 6 per cent from January 2026.</p>.<p>Luxury carmakers have announced price increases of at least 2 per cent across their portfolios, starting from the first month of the next calendar year.</p>.<p>German auto giant Mercedes-Benz has announced a pricing adjustment across its entire model range, effective January 1. The price correction, capped at 2 per cent on ex-showroom prices, comes amid sustained forex pressures that have characterised the luxury automotive landscape through 2025.</p>.Mercedes-Benz India plans price hike each quarter in 2026 to offset adverse forex impact.<p>“Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the Rs 100-mark. This prolonged volatility affects every aspect of our operations, from imported components for local production, to completely built units. In addition, rising input costs, increasing logistical expenses, in combination with inflationary costs have significantly raised our overall operational costs,” Mercedes-Benz India MD and CEO Santosh Iyer said.</p>.<p>Likewise, compatriot BMW India is mulling a 3 per cent increase in car prices across its product line in January, though it has not yet finalised a specific date for the hike to take effect. The company’s high-end two-wheeler arm, BMW Motorrad India, has already announced a price increase of up to 6 per cent across its range, effective January 1.</p>.<p>“Pressure from forex due to the Indian rupee’s sharp depreciation against US dollar and Euro has not eased for several months now and the input costs of raw materials and logistics have been impacted. The planned price hike measure will ensure necessary profitability and continued value generation for the company, as well as our dealer partners,” BMW Group India President and CEO Hardeep Singh Brar said.</p>.<p>Rising input costs and forex pressures typically hurt sales by pushing up vehicle prices and reducing affordability. Higher costs of raw materials, including steel, electronics, energy, and logistics, increase manufacturing expenses, while a weaker local currency makes imported parts and fully-built vehicles more expensive. This often forces automakers to raise prices or trim features to protect margins. Such price hikes, frequently compounded by higher interest rates, reduce purchasing power, leading to deferred buying decisions. At the same time, manufacturers are compelled to prioritise higher-margin models or rationalise production, resulting in slower sales growth or volume declines.</p>.<p>Meanwhile, JSW MG Motor India has also announced that it will hike vehicle prices by up to 2 per cent from January 1. The automaker said the extent of the increase would vary by model and variant.</p>.<p>Among electric vehicle manufacturers, leading two-wheeler player Ather Energy has announced a price hike of up to Rs 3,000 across its scooter line-up, effective January 1. </p>.<p>Vehicle prices across categories were reduced after the government announced cut in GST rates from September 22 onwards.</p>
<p>Bengaluru: Forex pressures and other macroeconomic compulsions, especially rising raw material costs, have prompted automakers across segments to increase vehicle prices between 2 per cent and 6 per cent from January 2026.</p>.<p>Luxury carmakers have announced price increases of at least 2 per cent across their portfolios, starting from the first month of the next calendar year.</p>.<p>German auto giant Mercedes-Benz has announced a pricing adjustment across its entire model range, effective January 1. The price correction, capped at 2 per cent on ex-showroom prices, comes amid sustained forex pressures that have characterised the luxury automotive landscape through 2025.</p>.Mercedes-Benz India plans price hike each quarter in 2026 to offset adverse forex impact.<p>“Currency headwinds have persisted longer than we anticipated this year, with the Euro consistently trading over the Rs 100-mark. This prolonged volatility affects every aspect of our operations, from imported components for local production, to completely built units. In addition, rising input costs, increasing logistical expenses, in combination with inflationary costs have significantly raised our overall operational costs,” Mercedes-Benz India MD and CEO Santosh Iyer said.</p>.<p>Likewise, compatriot BMW India is mulling a 3 per cent increase in car prices across its product line in January, though it has not yet finalised a specific date for the hike to take effect. The company’s high-end two-wheeler arm, BMW Motorrad India, has already announced a price increase of up to 6 per cent across its range, effective January 1.</p>.<p>“Pressure from forex due to the Indian rupee’s sharp depreciation against US dollar and Euro has not eased for several months now and the input costs of raw materials and logistics have been impacted. The planned price hike measure will ensure necessary profitability and continued value generation for the company, as well as our dealer partners,” BMW Group India President and CEO Hardeep Singh Brar said.</p>.<p>Rising input costs and forex pressures typically hurt sales by pushing up vehicle prices and reducing affordability. Higher costs of raw materials, including steel, electronics, energy, and logistics, increase manufacturing expenses, while a weaker local currency makes imported parts and fully-built vehicles more expensive. This often forces automakers to raise prices or trim features to protect margins. Such price hikes, frequently compounded by higher interest rates, reduce purchasing power, leading to deferred buying decisions. At the same time, manufacturers are compelled to prioritise higher-margin models or rationalise production, resulting in slower sales growth or volume declines.</p>.<p>Meanwhile, JSW MG Motor India has also announced that it will hike vehicle prices by up to 2 per cent from January 1. The automaker said the extent of the increase would vary by model and variant.</p>.<p>Among electric vehicle manufacturers, leading two-wheeler player Ather Energy has announced a price hike of up to Rs 3,000 across its scooter line-up, effective January 1. </p>.<p>Vehicle prices across categories were reduced after the government announced cut in GST rates from September 22 onwards.</p>