The “GST honeymoon” for Indian car buyers is ending just as the ball drops. As of Wednesday, December 31, 2025, the buzz in the auto world is all about the price tags changing at midnight.
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The thing is, that massive GST cut we saw back in September 2025? It’s being slowly eaten away by a weakening Rupee and the skyrocketing price of metals. Or nothing. Let’s be real, if you were waiting for the 2026 “New Year” sales, you might actually end up paying more than you would have last week. Those too.
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The “January Hike” List: Field Notes
At least nine major players have already pulled the trigger on price increases starting January 1, 2026.
| Manufacturer | Hike Amount | The “Why” |
| BMW | Up to 6% | Sharp Rupee depreciation against the Euro & USD. |
| Nissan | Up to 3% | Rising input costs; launching the Gravite MPV in Jan. |
| Tata Motors | Approx. 2-3% | Pushing the new Sierra EV while margins tighten. |
| Mercedes-Benz | Up to 2% | Euro-INR staying above ₹100 for most of 2025. |
| JSW MG Motor | Up to 2% | Windsor EV to get roughly ₹35k dearer. |
| Hyundai | 0.6% (Avg) | Mostly due to precious metal costs (Platinum/Palladium). |
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The Rupee vs. The Road
It’s an ongoing situation where luxury carmakers are feeling the most heat. Since most of them still import a ton of parts (or the whole car), the fact that the Euro hit ₹105.49 today is a disaster for their bottom line.
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BMW is being the most aggressive with that 6% jump.
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Mercedes-Benz is trying to play it cool by capping theirs at 2%, but they’ve dropped hints about “quarterly reviews.” Basically, if the Rupee keeps sliding, expect another hike in April.
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Electric Vehicles Aren’t Safe
And here’s the kicker: Even though the government is pushing EVs, the cost of battery cells—mostly imported from China—is rising because the Rupee is weakening against the Yuan too.
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BYD has already confirmed the Sealion 7 price goes up tomorrow.
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MG is hiking the price of its best-seller, the Windsor EV, by about ₹35,000.
The Duster Return
Renault is trying to balance this “bad news” with a big launch. They are hiking prices by 2% on their current lineup (Kwid, Triber, Kiger), but they are also officially opening bookings for the all-new Duster later in January. It’s a classic “give with one hand, take with the other” move.
Basically, the era of “GST-linked discounts” is officially over. If you didn’t close your deal by 6:00 PM today, that dream car just got a few thousand—or in the case of BMW, a few lakhs—more expensive.
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