The financial year 2024-2025 has ended, and a number of car makers in India have chosen to revise the prices of their models. In March 2025, nearly all top automakers announced price increases due to higher input costs. The increases are viewed as a step to fight inflation. Interestingly, this is the second or even third price hike for some makers within a matter of months. Let's have a brief glance at the car price hike affecting from 1st April 2025.
Maruti Suzuki was among the first companies to declare April 2025 price hike with up to a 4% increase based on the model and variant. Some of the affected models include Baleno, Alto K10, Swift, Dzire, Brezza, Grand Vitara, and a few more. Tata Motors announced a price rise of up to 3%, which will touch models like Nexon, Tiago, Curvv, as well as electric variants.
Car price hikes : Maruti Suzuki and other top brands adjust to rising costs
The effect of these increasing costs is seen in the recent price increases reported by a number of top car brands. The hikes in prices are different for different brands, with Maruti Suzuki taking the lead with a hike of up to 4%, followed by brands such as BMW, Hyundai, and Mercedes-Benz, all of which have put up hikes of up to 3%. Even MG Motor and Stellantis (Jeep and Citroën) have hiked their prices, but at a lesser rate of up to 2%. According to the reports, the breakdown of the hikes in prices among different car manufacturers is given below in the table:
Reasons behind car price hikes in the auto sector
A number of reasons have fueled this recent spate of price increases in the auto sector:
How global disruptions and tariffs are affecting car prices
Global supply chain disruption, partly induced by tariffs implemented by erstwhile US President Donald Trump, have added to the stress. Even though these tariffs did not actually affect Indian automobile manufacturers because the export volume is very low to the US, they have unleashed chaos in the supply chain. Manufacturers are scrambling now to re-strategise and divert manufacturing to other territories, including China, South Korea, and Japan. The mix of these disruptions, currency volatility, and raw material price increases has squeezed manufacturers. They can no longer roll over increasing costs as they used to, especially during a time when demand is weakening.
Car dealers slash prices on entry-level models to boost sales
Though car prices are going up, there is some relief for customers who are scanning the low-end cars. As sales in this segment have slowed down, dealers are doling out low prices on several low-end models. The Federation of Automobile Dealers Associations (FADA) has recorded a 7.8% year-on-year fall in the passenger vehicle segment, with rural areas having been specially affected by inflation and weakening consumer sentiment.
Consequently, car dealerships are keen to sell off their stock, with cash discounts, exchange bonuses, and special offers. Best sellers such as the Maruti Suzuki Alto K10, Maruti Suzuki S-Presso, and Maruti Suzuki Celerio are entitled to discounts up to Rs 40,000. Other lagging brands, including Citroen, are also discounting big on names such as the C3 and low EMI rates. Even carmakers such as Honda and Mahindra are throwing in discounts, ranging between Rs 2,500 to Rs 75,000 across models.
Big savings for car buyers with discounts and exchange deals
Besides direct cash discounts, there are exchange offers and scrappage bonuses as incentives to sell, particularly the FY2024 models. To illustrate, there is up to Rs 3 lakh discount by Mahindra for models such as the Thar Roxx, which maintains robust demand. Car buyers are also urged to negotiate with the dealers, particularly for MY24 models, in order to negotiate better deals and possibly higher discounts as dealerships start the new financial year with stagnant inventories.
Regardless of the price increase, car customers can still cut costs by offering better deals in the lower model segment. Together with price increase and discount promos, both mirror the different challenges the motor industry is coping with in 2025. While the owner of a motor vehicle continues to pay more and more, knowledgeable consumers who understand how to haggle remain able to afford a lot by cutting costs, especially since manufacturers of cars wish to boost interest in a problematic market.
Maruti Suzuki was among the first companies to declare April 2025 price hike with up to a 4% increase based on the model and variant. Some of the affected models include Baleno, Alto K10, Swift, Dzire, Brezza, Grand Vitara, and a few more. Tata Motors announced a price rise of up to 3%, which will touch models like Nexon, Tiago, Curvv, as well as electric variants.
Car price hikes : Maruti Suzuki and other top brands adjust to rising costs
The effect of these increasing costs is seen in the recent price increases reported by a number of top car brands. The hikes in prices are different for different brands, with Maruti Suzuki taking the lead with a hike of up to 4%, followed by brands such as BMW, Hyundai, and Mercedes-Benz, all of which have put up hikes of up to 3%. Even MG Motor and Stellantis (Jeep and Citroën) have hiked their prices, but at a lesser rate of up to 2%. According to the reports, the breakdown of the hikes in prices among different car manufacturers is given below in the table:
Reasons behind car price hikes in the auto sector
A number of reasons have fueled this recent spate of price increases in the auto sector:
- Rising component and operating costs: Higher component and operating costs have placed automobile manufacturers in a tight spot, resulting in price increases.
- Indian rupee depreciation: The depreciation of the Indian rupee against the US dollar has increased the cost of imported components, affecting manufacturers that use foreign components.
- Raw material price rise: Prices of major raw materials like steel, aluminum, and rubber have witnessed large increases. For instance, steel prices have increased by 10.6% year-on-year, and rubber prices have risen by 27%.
- Higher energy, transportation, and logistics expenses: The higher energy, transportation, and logistics expenses have also added to the price increases in the industry.
How global disruptions and tariffs are affecting car prices
Global supply chain disruption, partly induced by tariffs implemented by erstwhile US President Donald Trump, have added to the stress. Even though these tariffs did not actually affect Indian automobile manufacturers because the export volume is very low to the US, they have unleashed chaos in the supply chain. Manufacturers are scrambling now to re-strategise and divert manufacturing to other territories, including China, South Korea, and Japan. The mix of these disruptions, currency volatility, and raw material price increases has squeezed manufacturers. They can no longer roll over increasing costs as they used to, especially during a time when demand is weakening.
Car dealers slash prices on entry-level models to boost sales
Though car prices are going up, there is some relief for customers who are scanning the low-end cars. As sales in this segment have slowed down, dealers are doling out low prices on several low-end models. The Federation of Automobile Dealers Associations (FADA) has recorded a 7.8% year-on-year fall in the passenger vehicle segment, with rural areas having been specially affected by inflation and weakening consumer sentiment.
Consequently, car dealerships are keen to sell off their stock, with cash discounts, exchange bonuses, and special offers. Best sellers such as the Maruti Suzuki Alto K10, Maruti Suzuki S-Presso, and Maruti Suzuki Celerio are entitled to discounts up to Rs 40,000. Other lagging brands, including Citroen, are also discounting big on names such as the C3 and low EMI rates. Even carmakers such as Honda and Mahindra are throwing in discounts, ranging between Rs 2,500 to Rs 75,000 across models.
Big savings for car buyers with discounts and exchange deals
Besides direct cash discounts, there are exchange offers and scrappage bonuses as incentives to sell, particularly the FY2024 models. To illustrate, there is up to Rs 3 lakh discount by Mahindra for models such as the Thar Roxx, which maintains robust demand. Car buyers are also urged to negotiate with the dealers, particularly for MY24 models, in order to negotiate better deals and possibly higher discounts as dealerships start the new financial year with stagnant inventories.
Regardless of the price increase, car customers can still cut costs by offering better deals in the lower model segment. Together with price increase and discount promos, both mirror the different challenges the motor industry is coping with in 2025. While the owner of a motor vehicle continues to pay more and more, knowledgeable consumers who understand how to haggle remain able to afford a lot by cutting costs, especially since manufacturers of cars wish to boost interest in a problematic market.
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