Car prices set to rise in 2025: Major automakers announce increases

In a significant development, car manufacturers in India, including Maruti Suzuki, Hyundai, BMW, and Mercedes-Benz, have announced price hikes starting January 2025. This annual adjustment, ranging between 2-4%, is attributed to rising input costs, increased operational expenses, and higher transportation charges.

Luxury Brands Also Revise Prices

Luxury carmakers such as Mini, Audi, BMW, and Mercedes-Benz have confirmed price hikes for the new year. The escalating costs across manufacturing and logistics have compelled automakers to pass on some of the burden to consumers, a trend consistently seen across the industry.

Maruti Suzuki to Increase Prices by 4%

India’s largest carmaker, Maruti Suzuki, will raise prices by up to 4% across its product range. The hike will vary depending on the model and variant. The company, which holds a 40% market share, offers vehicles ranging from the Alto, priced at ₹3.99 lakh, to the Invicto, which costs over ₹30 lakh. “While the company strives to optimize costs, some increases will be passed on to the market,” a spokesperson stated.

Hyundai Announces ₹25,000 Price Hike

Hyundai Motor India will increase prices of all models by ₹25,000 starting January 1, 2025. This includes popular models like the Venue, Creta, and Ioniq 5 EV. Hyundai also plans to introduce the Creta EV early next year, expanding its presence in the electric vehicle segment.

Nissan Magnite Prices to Rise by 2%

Nissan will raise the prices of the Magnite SUV by 2%. While the Magnite is the company’s key India-made vehicle and is also exported globally, the price hike does not extend to its flagship X-Trail SUV, introduced earlier this year.

Audi Plans 3% Price Increase

German carmaker Audi will increase prices across its lineup by 3%. Locally assembled models such as the Q5 and Q7 SUVs, along with imported vehicles like the e-tron GT and RS e-tron GT, will be included in the hike. Audi attributes this move to increasing production and logistics costs.

BMW Prices to Go Up by 3%

BMW India has confirmed a 3% price rise effective next year. This adjustment will apply to its wide lineup, which includes locally assembled vehicles such as the 3 Series and X1, as well as imported models like the M5 and i7 electric sedan. The company cites higher input and operational costs for the hike.

Mercedes-Benz Hikes Prices by Up to 3%

Mercedes-Benz will increase prices by up to 3% for models produced after December 31, 2024. The GLC SUV will be costlier by ₹2 lakh, while the Maybach S680 will see a ₹9 lakh increase. However, cars manufactured by December 31 and booked this year will retain current prices.

MG Motors Joins with a 3% Increase

MG Motors has also announced a 3% price hike across its lineup, citing rising input costs as the primary reason. MG’s focus on sustainability and innovation, including its Battery-as-a-Service (BaaS) initiative, continues to drive its business strategy.

Mahindra to Increase SUV and CV Prices

Mahindra & Mahindra will implement a 3% price increase for both its SUVs and commercial vehicles starting January 2025. The company explained that rising commodity prices and inflation have necessitated this adjustment, despite efforts to absorb a portion of these costs.