Hurry or Pay More: If You Plan to Buy a Car in 2025? Prices Are Set to Rise

Automakers announce price hikes effective January due to rising costs.

If you’re considering purchasing a car in 2025, prepare to pay more as Indian automakers, including Maruti Suzuki, Hyundai, Mahindra, and luxury brands like Mercedes-Benz, Audi, and BMW, are set to increase prices across their model ranges. The hikes, ranging between 3% and 4%, are attributed to rising input, commodity, and operational costs.

Key Price Adjustments Across Brands

• Maruti Suzuki: Price hikes up to 4% will affect models from Alto K10 to Invicto, driven by increased input and operational costs.

• Hyundai Motor India: Cars like the Verna and Creta will see a price rise of up to ₹25,000, citing logistics and commodity expenses.

• Mahindra & Mahindra: SUVs and commercial vehicles will cost up to 3% more due to inflation and commodity price increases.

• MG Motor India: A flat 3% hike across all models to counter rising production costs.

• Mercedes-Benz: Prices will rise by up to 3%, with increments ranging from ₹2 lakh (GLC) to ₹9 lakh (Maybach S 680).

• Audi & BMW: Both brands announced a uniform 3% increase across their model ranges.

Why Are Prices Increasing?

The automotive industry faces multiple challenges that have led to these price hikes:

Surging Commodity Costs: Essential materials like aluminium (+10.6%) and rubber (+26.8%) have become significantly more expensive.

Logistics Challenges: Disruptions in global shipping routes, especially along the Red Sea, have driven up transportation costs.

Currency Fluctuations: Unfavorable exchange rates have inflated the cost of imported components.

Industry Insights

• Maruti Suzuki: The price hike is necessary to manage operational and input costs, though efforts are being made to minimize customer impact.

• Hyundai: The company aims to maintain profitability amid rising expenses.

• MG Motor India: “Minor adjustments are essential to counter inflationary pressures while maintaining quality,” stated Satinder Singh Bajwa, Chief Commercial Officer.

With price increases taking effect in January 2025, prospective buyers should consider finalizing purchases before the hikes. These adjustments will impact entry-level, mid-range, and luxury segments alike, making early decision-making advantageous.

The price hike reflects the industry’s struggle with economic pressures, balancing the rising cost of production while ensuring customer satisfaction and profitability.