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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Renault Group-owned European car brand Dacia has achieved a significant milestone with the rollout of the 100,000^th Bigster just one year after its production began at the Mioveni facility in Romania. This impressive volume highlights the immediate and substantial demand for the brand's latest model. Even prior to its full market launch, the vehicle garnered over 13,000 pre-orders, signalling strong early interest in its proposition of a value-oriented, family-sized SUV.

The model swiftly translated this initial promise into market leadership, becoming the best-selling C-SUV to retail customers across Europe in the second half of 2025. This commercial success is mirrored in the United Kingdom, where close to 5,000 orders have been recorded. British buyers have shown a distinct preference for the efficient hybrid 155 powertrain and the generously specified Journey trim level, with Indigo Blue being the colour of choice.

Beyond sales figures, the Bigster's impact has been validated by influential industry awards, most recently at the 2026 What Car? Car of the Year Awards, where it was hailed as a definitive value champion. Designed to challenge the status quo, the Dacia Bigster, starting from GBP 25,215, successfully delivers a robust, well-equipped and practical solution for families, firmly establishing its successful position in the competitive automotive landscape.

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Hyundai Motor India (HMIL) has released its unaudited financial results for Q3 FY2026 and nine months ending 31 December 2025.

The company reported a Profit After Tax (PAT) of INR 123.44 billion for Q3, representing a 6.3 percent increase YoY. Revenue for the quarter reached INR 1,797.35 billion, up 8 percent compared to the same period last year. EBITDA stood at INR 2,018.3 billion, a 7.6 percent rise, supported by festive demand and the implementation of GST 2.0.

The company stated that the domestic demand was supported by wholesale volumes increasing 5 percent QoQ. The Hyundai Creta recorded sales of over 200,000 units in the 2025 calendar year, while the new Venue model has received nearly 80,000 bookings to date.

Hyundai Motor India also entered the commercial mobility segment with the Prime HB and SD taxi models. Exports grew by 21 percent YoY in Q3 FY26, accounting for 25 percent of the total sales mix.

For the nine-month period, EBITDA reached INR 6,632.5 billion, a 3.3 percent increase. EBITDA margins expanded to 12.8 percent, up from 12.5 percent in the previous year, despite costs related to capacity stabilisation and commodity prices.

Tarun Garg, Managing Director & Chief Executive Officer, said, “The third quarter performance underscores our resilience and strong execution of 'Quality of Growth' strategy, marked by healthy growth in volumes, revenue and profitability. Notably on a year-to-date basis, EBITDA margins expanded to 12.8 percent as against 12.5 percent last year, supported by our efforts towards improving sales mix and prudent cost control measures. As we move ahead, the robust January’26 sales number gives us great momentum towards a healthy 2026.”

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Stellantis-owned Jeep has announced its Strategic Plan Jeep 2.0, positioning India as a central hub for its operations in the Asia Pacific region. The plan focuses on localisation, manufacturing depth, and export expansion from the company's facility in Ranjangaon, Pune.

As part of the strategy, Jeep intends to increase localisation levels to 90 percent, up from the current 65–70 percent. This move is aimed at strengthening supply-chain resilience and cost competitiveness. The Ranjangaon plant, which has an annual capacity of 160,000 vehicles, currently exports the Compass, Meridian, and Commander to markets including Japan, Australia and New Zealand. Plans are underway to expand exports to Africa and North America.

The company plans to introduce a new vehicle lineup in India starting from 2027. In the interim, Jeep will maintain its current portfolio through refreshes and special editions. To support its customers, the brand has introduced the Confidence 7 programme, which includes a buyback scheme, pre-maintenance packages, and extended warranties.

At present, Jeep operates over 85 sales and service touchpoints across 70 cities in India. The automaker stated that in 2025, the Wrangler Willys 41 limited edition sold out within seven days. The company is also focusing on its owner community, which has reached 100,000 members, through experiential platforms and brand clubs.

Shailesh Hazela, CEO & Managing Director, Stellantis India, said, “Jeep’s 85-year legacy is built on authenticity and adventure. Strategic Plan Jeep 2.0 lays out how we will sharpen our product strategy and strengthen the customer experience year after year, driven by deeper localisation, global product alignment, expanding our vehicle offerings, and programs that deliver real value. We are equally focused on taking care of our existing customers, ensuring they receive the support, service and confidence they expect from Jeep. Success in India demands resilience and long-term commitment and we are investing with that clarity to ensure Jeep remains a brand of pride and desirability.”

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has reported its financial results for Q3 FY2026.

The company reported revenue of INR 475.344 billion, as against INR 368.02 billion last year, net profit came at INR 37.94 billion, as against INR 36.59 billion last year. It is to be noted that the net profit was impacted for Q3 FY2026 was impacted due to a one-time provision of INR 5,939 million relating to new Labour Codes.

During the period, the company achieved its highest quarterly domestic sales of 564,669 units, an increase of 97,676 units over the previous year. Total sales reached 667,769 units, which included 103,100 units in exports. This performance was supported by a recovery in the car market following GST reform, with the small car segment in the 18 percent GST bracket contributing significantly to the volume increase.

For the nine-month period from April to December 2025, the company recorded its highest sales volume, net sales and net profit. Total sales volume reached 1,746,504 units, with domestic sales at 1,435,945 units and exports at 310,559 units. Net sales for this period increased to INR 1,242 billion, while net profit grew to INR 1,085 billion.

Financial statements for the period have been restated following the amalgamation of Suzuki Motor Gujarat (SMG) with MSIL. This process took effect from 1 April 2025. The company continues to monitor market conditions as it manages its manufacturing and sales operations.

The recovery in the car market was led by the small car segment. Sales growth in this category accounted for 68,328 units of the total domestic increase. The company remains focused on domestic and export markets to maintain its sales volumes.

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