With the exciting range of autos being offered in the Indian market, the question that is being increasingly asked is about the pricing. Are Indian cars overpriced? Ravi Shankar from Chennai said that his plan to upgrade to a new car from his current stead – a 2013 model Volkswagen Polo GT TSI – threw some weird challenges. “The Hyundai Alcazar with a starting price of INR 1,700,000 and Skoda Kushaq with a starting price of INR 1,700,000 lakh look overpriced. Considering the fact that localisation has gained since I bought my Polo, the car prices should go down rather than go up. My Polo, with an imported TSI engine and a DSG transmission, cost INR 930,000 lakh. The Polo GT TSI on offer today is priced at INR 1,174,000 approximately in Chennai,” said Ravi. He added, “Should the price not go down rather than go up?” Mahesh Murthy from Bangalore said that he has postponed his plan to upgrade from his 2012 Punto. He finds the current car prices exorbitant. 

A car dealer from Delhi expressed on the condition of not revealing his name that the interpretation or inference of a product being overpriced lies with the buyer. Cars today offer more creature comforts, safety and powertrain combinations, he said. This should justify their price, he added. Stating that a sub-four metre car costing close to or more than INR 1,500,000 is discomforting, Vikram Jagtap of Pune said that cars like these fit in a tax bracket that ensures a significant tax rebate. Asked if this was because of the regulations and features, he answered that the he is not certain if the addition of technologies and features like BS VI, airbags, ABS, ESP and EBD would lead to such a price escalation. Saikat from Kolkata averred cars like the Mahindra XUV300 and Tata Nexon offer among the best safety aspects if the preconception of buying a ‘big’ car at INR 1,500,000 is set aside. They offer a long list of safety features like seven airbags, ESP, ISOFIX seats, ABS, EBD, 5-Star GNCAP rating and more, he added. 
 

Is it features?
Rohan Srivastava from Kanpur informed that the long list of features in today’s new cars is their differentiator as well as a catalyst for price increase. They, to an extent, justify the price increase. The other factors include inflation, which has in turn led to a jump in raw material prices, he added. Drawing attention to the near 40 percent jump in steel prices, which has affected his business, Srivastava said that some Indian car segments are reasonably priced. Srivastava drives a Hyundai. Neelkanth Sawant, a marketing professional from Pune, who drives a Maruti, said that car prices have kept pace with inflation. What failed to keep up with the pace are salaries in most jobs. “It is therefore that those looking to upgrade their cars seven-to-ten years down the line are finding it difficult to choose a new set of wheels costing 1.5 to two times more,” he added. Of the opinion that an INR 10,00,000 priced car of yesteryear lacked features like airbags, ABS, EBD, touchscreen, longer warranty coverage, parking sensors, auto wipers and head lamps, sun roof, climate control and connected car tech, an auto enthusiast from Hyderabad said that factor in inflation, and it is not illogical to have the current version of the same model cost INR 1,700,000.  

Raveeraj from Bangalore averred manufacturers are pricing their autos as per the customer’s willingness to pay. The fact that most cars are well-equipped does not mean that they are overpriced, he added. Ajit Powar of Pune expressed cars in India tend to be overpriced than in many other markets of the world. They also tend to differ in quality, he quipped. Is it because laws concerning autos are perhaps not as strict as in the UK or the US? Powar could not provide a definitive answer. An industry observer stated that he has seen some companies practice a culture of using different materials in cars that they export. The grade of steel they use differs, the quality and thickness of paint they use differs and even the amount of insulation or features they offer is different, he said. This, he claimed, is done to address the stringent safety and other requirements of the export markets. In terms of emissions and safety, we lag behind the European and US markets, and yet the cars made in India are priced high. This has largely to do with the taxes and high cost of doing business, he explained. Ram Naresh of Hyderabad said that the TUV300 he bought in 2017 cost him INR 1,250,000 on road. On the top of it, he paid INR 250,000 as the loan interest. He spent around INR 50,000 on accessories. The total cost came to about INR 1,550,000. What he spent on diesel, service, spares, insurance etc. would amount to another INR 150,000 to INR two-lakh. Looking at upgrading to a new car, he is finding the prospect of spending INR 150,000 on a sub-four metre vehicle weird. 

Inflation, weak Indian rupee, taxes, policies or greed?
Ram Naresh’s search of the low-end versions of cars has made him conclude that they are overpriced. “The Harrier XE, for example, is quite bare bone,” he said. “I have decided to postpone my decision to buy a new vehicle. I am now looking for a used car instead,” he added. Blaming inflation, weakening Indian rupee, the greed of automakers to make huge profits and the knee jerk reaction of authorities, Rohit from Indore said that it is high time cars are looked upon as a necessity and taxed accordingly. Bala from Chennai averred that tax policies have led to a great extent for cars to be highly overpriced. Electric cars are also not being spared, he rued. Look at the prices of electric cars and it does not look like the government is encouraging them, he quipped. Dev Tahalwani, who operates a three-wheeler, said that he finds the price of the new Mahindra Treo Zor electric three-wheeler high. And, if I avail finance, the cost is going further up, he complained. Expressing surprise over the recent EY survey report about buyers being ready to pay a premium of up to 20 percent, an industry source mentioned that the price of electric cars on offer in India is definitely high. The operating costs of such vehicles, their range, their reliability and their usability in terms of infrastructure are values that are yet not clear. 
 

Checks and balances?
Of the opinion that law makers in US and Europe are far more aware and sensitive to the sentiments of buyers and the general public, an industry observer said that the situation in India has not matured as much. The level of checks and balances governing automakers in the US and Europe are simply not there, he added. Stating that inflation, depreciating Indian rupee, ever increasing taxes, availability of high tenure loans and stagnating incomes have already driven car prices to insane levels, Robin from Chennai mentioned that a good upgrade for a reasonable amount after four-to-five years is no longer in sight. Sanchit Chari from Bangalore said, “Taxes have remained the same for the last few years. When GST was rolled out, the rates were set to what the combination of pre-GST rates were (VAT, state taxes etc.). So, they are not the cause of price hikes. Their increase has been one-to-two percent, whereas the car prices have moved up by almost 30 to 50 percent during the same period.” “It needs to be investigated if the addition of safety and emission technologies as well as features would lead to an increase in prices to such a level,” he averred. Rajesh Tandel from Mumbai drew attention to the price escalation in some of the long running cars in India like the Toyota Innova. In 2005, the vehicle was launched at a starting price which was no more than INR seven lakh, he said. Today, he mentioned, the starting price of the same vehicle is no less than INR 1,600,000 lakh. An increase of INR eight-lakh for a product line that is not drastically different from that of 2005 is hard to grasp, he added. 

A Delhi-based industry source expressed that the level of taxes on an automobile (there’s GST and a compensation cess of 48 percent, the enormous registration tax that is a state subject and continues to rise time and again), regulatory requirements and the cost of doing business are responsible for the costs rising so much and so often in at least the last one year. The average buying capacity of an Indian buyer has not risen in line, he informed. Explaining that INR 10,00,000 (roughly USD 13,000) is more or less the same amount of money incurred to develop a modern car – a compact SUV or a typical sedan – in comparison to other markets the world over, the source said that it is the tax component that needs to be looked at. Of the opinion that taxes would amount to a good portion of the prices paid to buy cars, Rohit remarked, “The increase in car prices is mainly due to base increases by manufacturers. Taxes are a percentage of base price and increase as the base price increases.” “If one wants to compare prices of cars with those that are also found in the US, he or she could compare the ex-showroom price there and the ex-showroom price here,” he explained. Doing the same some years ago, Rohit concluded that the base price of a car in India is a bit higher than in the US. This, despite the higher labour and regulatory cost in that country. 

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Skoda Auto India has inaugurated a new sales facility in Raidurgam, Hyderabad, in partnership with Mody India Cars. The move strengthens the brand’s presence in Telangana, a key market for its growth strategy in India.

The new facility covers 3,200 sqft and is designed according to Skoda’s global ‘Modern Solid’ design philosophy, with space to display four vehicles. With this addition, Skoda now operates 15 customer touchpoints in the twin cities of Hyderabad and Secunderabad and a total of 19 touchpoints across Telangana, including Karimnagar, Nizamabad and Warangal.

With this, Skoda’s network has now expanded to over 330 touchpoints across 182 cities, up from 120 outlets in 2021. This growth follows a record-breaking Q1 2026, where the company sold 20,028 units, a 17 percent increase YoY, driven largely by the success of the Kylaq sub-compact SUV.

Ashish Gupta, Brand Director, Skoda Auto India, said, “With the inauguration of this new sales facility in Hyderabad, we continue to strengthen Skoda Auto India’s presence across Telangana. This city is a key market for us, and with over 15 Customer Touchpoints now operational, we are bringing our complete product range closer to customers while ensuring they experience the highest standards of service and care. Telangana remains a vital pillar of our growth in India, and with the Kylaq, new Kushaq, Kodiaq and Slavia, we are confident of growing the Skoda brand in this important market.”

Nihar Mody, Dealer Principal, Mody India Cars, said, “We are delighted to partner with Skoda Auto India and bring the brand’s premium experience closer to customers in Hyderabad. This new facility is designed to deliver a premium customer experience, from display to delivery. Our commitment is to provide the customers of this city with the very best of Skoda Auto’s product range and ownership journey.”

The expansion aligns with the company's ‘Skoda Super Care’ initiative, which provides a standard 4-year warranty and roadside assistance to enhance the long-term ownership experience.

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Tata Motors Passenger Vehicles (TMPV) has expanded its popular compact SUV offering the Nexon with the Pure+ PS variant at INR 959,000 (ex-showroom, Delhi). This introduction makes the Nexon the first vehicle in India to offer a panoramic sunroof at a price point below INR 1 million. The launch coincides with the milestone of one million Nexon units on Indian roads.

The Pure+ PS variant is available across multiple powertrain options, including a 1.2-litre turbocharged petrol engine, Twin Cylinder iCNG and a diesel engine, with both manual (MT) and automated manual (AMT) transmissions. The Nexon remains the only SUV in India to offer petrol, diesel, CNG and electric powertrains.

The tech-loaded Nexon Pure+ PS variant gets a voice-assisted panoramic sunroof, a 26.03-cm Harman infotainment system with wireless Android Auto and Apple CarPlay. It features a 6-speaker sound system and HD rear-view camera, auto LED headlamps & rain-sensing wipers, and cruise control and electric ORVMs with auto-fold functionality

Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility, said, “As India’s #1 selling car in H2FY26 and India’s #1 SUV in FY26, the Nexon continues to remain as the preferred choice for customers across the country. With a 1 million+ strong family, Nexon has always stood for offering a superior all round package to its buyers at every price point. The introduction of the Pure+ PS variant with India’s first panoramic sunroof under INR 1 million further strengthens its proposition.”

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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has announced its highest-ever CAPEX of INR 75 billion — its highest ever —to fund a product offensive and manufacturing upgrades in FY2027.

The company also plans to introduce two brand new SUVs, including a localised electric SUV in the compact segment and an ICE SUV in the mass market segment. Interestingly, the South Korean automotive major has forecasted a 8-10 percent growth in sales across domestic and export markets for FY2027.

In FY2026, Hyundai Motor India saw its profit after tax decline by 4 percent to INR 54,315 million, as against INR 56,402 million a year ago. The revenue came at INR 707,633 million, up 2 percent, as against INR 691,929 million, EBITDA at INR 85,985 million, as against INR 89,538 million a year ago.

Despite a dip in profit after tax in FY2026 and commodity price pressures that impacted Q4 margins by 120 basis points, the leadership has issued a margin guidance of 11-14 percent for FY2027. Hyundai Motor India management noted that approximately half of the Q4 margin impact was a one-off occurrence. To counter unstable commodity costs, a calibrated price increase is scheduled for May 2026.

Tarun Garg, MD & CEO, Hyundai Motor India, said, “FY2026 was a year where we demonstrated our ability to effectively navigate a challenging environment. Looking ahead to FY2027, we have started the year on a strong footing. We expect this positive momentum to continue, backed by new product launches in high-demand segments.”

He further expressed confidence in a domestic volume growth target of 8-10 percent for the coming year. This outlook is supported by a strong start in April 2026, which saw domestic volumes grow by 17 percent.

The company expects that shifting the production of the Venue to the Pune plant will allow the Chennai facility to maximise capacity utilisation for these upcoming launches.

The CAPEX roadmap allocates nearly half of the funds to new product development, with 30 percent dedicated to plant infrastructure. This includes the Phase 2 expansion of the Pune facility and the modernisation of the Chennai plant. By FY2027, the Pune plant is expected to reach a capacity of 250,000 units, contributing to a group-wide goal of 1.14 million units by 2030.

The upcoming dedicated, localised electric vehicle in the compact SUV category, marking a significant step towards increasing its EV penetration, which stood at 2 percent in FY2026.

Furthermore, Hyundai Motor India is positioning itself as a primary global export hub for Hyundai Motor Company. The company’s target of 8-10 percent growth in export volumes, specifically leveraging its status as the exclusive global manufacturer for the Exter SUV. Future plans include the introduction of Left-Hand Drive (LHD) variants of the Exter and Verna for international markets.

The company also confirmed its commitment to meeting CAFE 3 standards through a diversified powertrain mix, including its CNG portfolio, which reached a record 18 percent contribution in the final quarter of FY2026.

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Hyundai Motor India (HMIL), one of the leading passenger vehicle manufacturers, has marked its 30th Foundation Day today.

Established on 6 May 1996, the South Korean automaker has sold 13.5 million units to date, which includes 9.6 million vehicles sold in India and 3.9 million units exported to 150 countries.

Since its inception, Hyundai Motor India has invested around INR 4,070 billion in its Indian operations. The company has outlined a plan to invest an additional INR 4,500 billion between FY2026 and FY2030. This investment will focus on manufacturing, electrification and the introduction of 26 products and variants by 2030.

Tarun Garg, MD & CEO, Hyundai Motor India, said, "Hyundai Motor India’s 30-year journey is defined by trust earned over time and the pride of our teams delivering consistently for customers across India. It is also marked by Progress - our collective contribution to advancing the mobility journey of India. We are proud to have served over 13.5 million customers since inception - including 9.6 million+ in India and 3.9 million+ exported to 150 countries across the globe - a testament to India’s role at the heart of Hyundai’s global success. As we celebrate this milestone, we look ahead with youthful energy and unwavering commitment, shaping mobility for India and the world. Guided by our global vision of Progress for Humanity, we remain deeply connected to India’s aspirations, driving innovation, sustainability and shared prosperity for generations to come."

The automaker operates manufacturing facilities in Chennai, Tamil Nadu and Talegaon, Pune, with a combined capacity to produce around 994,000 units per annum, with plans to reach 1.07 million units per annum by 2028. Hyundai Motor India is currently the largest cumulative exporter of passenger vehicles from India.

In India, the automaker has established a robust sales network of 1,500 outlets across 1,100 cities, covering 78 percent of the country’s districts. The service network includes 1,675 touchpoints and 162 mobile service vans. It employs 50,000 professionals across its dealerships. Digital systems are used for 91 percent of repair orders and 632 workshops offer live streaming of vehicle services.

Hyundai Motor India has achieved the RE100 benchmark, with all offices and plants powered by renewable energy. At the Chennai plant, 80 percent of water requirements are met through rainwater harvesting and recycling. The facility also maintains zero liquid discharge.

Through the Hyundai Motor India Foundation, the company has invested over INR 8.03 billion in social initiatives since 2014. These programmes include the planting of 1.29 million trees and the support of 2,300 schools. The company provides 15,000 to 18,000 direct jobs and supports approximately 350,000 to 450,000 indirect roles through its suppliers and partners.

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