When car prices rise in India and how to time your purchase
By Arjun Ramanarayanan, IndiCar · Published 3 November 2026 · Tips
Carmakers announced increases of around 0.6 percent to up to 2 percent from January 1, 2026, and some reprice mid-year too. Here is how the calendar, GST, road tax and TCS shape what you pay.
New-car prices in India most often rise on January 1, and some makers add more increases during the year. For January 2026, Hyundai announced a weighted average increase of around 0.6 percent. Renault, JSW MG Motor and Mercedes-Benz each announced increases of up to 2 percent. When you buy, the date of a hike matters. So do the tax lines at Rs 10 lakh.
January is the main hike date
Manufacturers usually reprice at the start of a new year. The new price covers higher production costs and protects margins. The January 2026 round followed that pattern.
| Maker | Announced increase | Effective |
|---|---|---|
| Hyundai | Weighted average of around 0.6 percent | January 1, 2026 |
| Renault | Up to 2 percent across the range | January 2026 |
| JSW MG Motor | Up to 2 percent | January 1, 2026 |
| Mercedes-Benz | Up to 2 percent | January 1, 2026 |
An "up to" figure is a ceiling, so the model you want may rise by less. Hyundai's figure is a weighted average across its range, not a flat rate for every model.
Hikes also land in the middle of the year
January is not the only date to watch. Maruti Suzuki raised prices by up to Rs 32,500 from February 1, 2025. It followed with increases of Rs 2,500 to Rs 62,000 from April 8, 2025, its second hike that year.
MG has repriced several times in 2026. The Majestor went up by as much as Rs 1.5 lakh in August 2026. It rose again by Rs 1 lakh on ex-showroom prices from November 2026, which works out to 2.22 to 2.35 percent depending on variant. The Windsor rose by Rs 15,000 in November 2026.
Waiting until after January does not guarantee a stable price. A single model can be repriced more than once in a year.
Why carmakers raise prices
Makers give the same handful of reasons each time:
- Sustained inflation in raw materials. Hyundai said this had pushed up its overall production costs.
- Higher input costs, including precious metals and other commodities.
- Higher logistics expenses.
- Currency fluctuations.
- Recovering part of the GST relief buyers received earlier in 2025, which is how the January 2026 increases were described.
These costs build up through the year. January is the usual point at which makers pass them on.
How GST reset car prices in 2025
The 2025 GST revision cut the rate on smaller cars to 18 percent. Larger cars moved to a single 40 percent rate, down from a combined rate of 43 to 50 percent before. EVs stayed at 5 percent.
| Category | Before | Now |
|---|---|---|
| Petrol, LPG and CNG cars up to 1200 cc and under 4 metres | 28 percent | 18 percent |
| Diesel cars up to 1500 cc | 28 percent | 18 percent |
| SUVs and large cars over 1200 cc petrol or 1500 cc diesel | 43 to 50 percent (28 percent GST plus 15 to 22 percent cess) | 40 percent |
| Electric vehicles | 5 percent | 5 percent |
Some of the January 2026 increases were framed as taking back part of this relief. Compare current prices with current prices, not with figures from before the GST change.
Maharashtra road tax and the Rs 10 lakh line
In Maharashtra, road tax is a one-time percentage of the ex-showroom price including GST. Discounts are not deducted from that base. The rate steps up with the price band.
| Ex-showroom price | Petrol | Diesel |
|---|---|---|
| Below Rs 10 lakh | 11 percent | 13 percent |
| Rs 10 lakh to Rs 20 lakh | 12 percent | 14 percent |
| Above Rs 20 lakh | 13 percent | 15 percent |
The higher rate applies to the whole price. A petrol car at Rs 9,90,000 pays Rs 1,08,900 in road tax, while one at Rs 10,10,000 pays Rs 1,21,200. If a hike carries a car across a band line, you pay a higher tax rate as well as a higher price.
An amendment in force from 1 July 2025 revised the slabs. It also raised the ceiling on total tax from Rs 20 lakh to Rs 30 lakh. A Rs 2 crore petrol car registered to an individual now pays Rs 26 lakh, up from Rs 20 lakh. Under the state's Electric Vehicle Policy 2025, EVs sold and registered in Maharashtra during the policy period are exempt from motor vehicle tax.
TCS starts above Rs 10 lakh
Under Section 206C(1F), a 1 percent tax collected at source applies when a car's sale value is more than Rs 10,00,000. Nothing is collected at Rs 10 lakh or less. Above that line, the 1 percent applies to the full amount, so a Rs 15,00,000 sale means Rs 15,000.
The rate and threshold stay the same in FY 2026-27, now under section 394 of the Income-tax Act 2025. A price increase that takes a car past Rs 10,00,000 adds this line to the bill.
Worked example: Mahindra Scorpio N
IndiCar's price list dated 12 October 2026 covers 27 variant and powertrain combinations of the Scorpio N for an individual registering the car in Mumbai. The range offers petrol and diesel engines with manual and automatic gearboxes. The cheapest version is the Z2 Petrol Manual 7-seater at Rs 16,54,792 on the road.
| Item | Amount |
|---|---|
| Ex-showroom price | Rs 13,69,001 |
| RTO registration and road tax | Rs 1,68,436 |
| Insurance (first-year comprehensive) | Rs 1,02,815 |
| TCS | Rs 13,690 |
| FASTag | Rs 850 |
| On-road price | Rs 16,54,792 |
The charges on top of the ex-showroom price come to Rs 2,85,791. TCS here is 1 percent of the ex-showroom price, so an increase in that price raises it too.
At the top of the range, the Z8 L 4WD Diesel Automatic 7-seater has an ex-showroom price of Rs 25,49,001 and costs Rs 31,30,136 on the road. The gap between the cheapest and most expensive versions is Rs 14,75,344. Every version is listed on the Scorpio N prices and configurator page.
How to time your purchase
- Plan around January 1. Most announced increases for 2026 took effect on that date, at up to 2 percent for several makers.
- Use price protection when it is offered. BYD offered price protection to buyers who booked the Sealion 7 by December 31. Booking before a cut-off like that is the most direct way to beat a new-year increase.
- Do not count on a quiet period. Maruti Suzuki raised prices twice by April 2025, and MG repriced models in August and November 2026.
- Watch the Rs 10 lakh line. If a car sits just below it, a hike can push it into a higher road tax band and into TCS at the same time.
- Judge the full on-road figure. Run your variant through the on-road price calculator, or browse all new cars with on-road prices. IndiCar gives you the written breakup before you book.
On these facts, timing pays off most for cars priced close to Rs 10 lakh, where a small increase can trigger extra tax. Well above that line, a hike raises the price, road tax and TCS in proportion, with no extra step.
Sources: Hyundai Motor India to Raise Vehicle Prices by 0.6% from January 2026, MG Price Hike Nov 2026 - Windsor By Rs 15k, Majestor By Rs 1 Lakh, MG Majestor Price Hike November 2026 - Up To Rs. 1 Lakh
Buying a new car through IndiCar
IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
When do car prices usually go up in India?
Most makers adjust prices at the start of the new year to cover higher production costs. Some also raise prices mid-year. Maruti Suzuki raised prices from February 1 and again from April 8, 2025, and MG repriced models in August and November 2026.
How much did car prices rise in January 2026?
Hyundai announced a weighted average increase of around 0.6 percent from January 1, 2026. Renault, JSW MG Motor and Mercedes-Benz announced increases of up to 2 percent.
Does a price hike change road tax in Maharashtra?
Yes. Road tax is a percentage of the ex-showroom price including GST. For petrol cars the rate is 11 percent below Rs 10 lakh, 12 percent from Rs 10 lakh to Rs 20 lakh and 13 percent above Rs 20 lakh. Diesel cars pay 13, 14 and 15 percent across the same bands.
When does TCS apply to a new car?
TCS of 1 percent applies when the sale value is more than Rs 10,00,000. It applies to the whole amount, so a Rs 15,00,000 sale means Rs 15,000. Nothing is collected at Rs 10 lakh or less, and the same rule holds in FY 2026-27.
What GST rate applies to cars now?
Petrol, LPG and CNG cars up to 1200 cc and under 4 metres, and diesel cars up to 1500 cc, pay 18 percent. SUVs and large cars with bigger engines pay 40 percent. EVs remain at 5 percent.
Do EVs pay road tax in Maharashtra?
Under Maharashtra's Electric Vehicle Policy 2025, EVs sold and registered in the state during the policy period are exempt from motor vehicle tax.
Tags: car price hike, gst on cars, road tax, tcs, car buying