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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Japanese auto major Honda Cars India (HCIL) has hit a major manufacturing and export landmark, announcing today that it has surpassed 200,000 cumulative units exported from its Indian operations. This achievement underscores the growing global acceptance of Honda's 'Made-in-India' models and reinforces the country's strength as a premium automotive manufacturing hub.

The celebrated milestone has been significantly fuelled by two key models: the Honda City sedan and the new mid-size SUV, the Honda Elevate, which together account for 78 percent of the total export volume.

Honda's export journey from India began with smaller volumes sent to neighbouring markets. The pace has accelerated dramatically in recent years:

• The first 50,000 units were exported primarily to SAARC, South Africa and SADC countries up until 2021.
• The next 50,000 units were reached in the subsequent two-and-a-half years, with exports expanding to Left Hand Drive markets like the Middle East, Mexico and Turkey for the Honda City.
• The most recent 100,000 units were achieved in just the last two years, driven by massive demand for the Elevate in new markets, including Japan, South America and Caribbean nations.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “Achieving 200,000 export units fills Honda Cars India with immense pride. This milestone underscores the global recognition of our India-made cars. It also reflects the dedication of our skilled teams and robust manufacturing capabilities. Exports are an integral part of HCIL’s business and revenue strategy, and we remain committed to strengthening this area going forward. We are dedicated to the ‘Make in India’ initiative, serving both our domestic market and global customers.”

Over the years, HCIL has exported vehicles to 33 countries. The largest recipient markets include: Japan – 30 percent, South Africa and SADC countries – 26 percent, Mexico - 19 percent and Turkey – 16 percent.

While the City and Elevate are the current leaders, the remaining 22 percent of the total export volume includes a diverse portfolio of models, such as the Brio, Amaze, Jazz, BR-V, Mobilio, City e:HEV, Accord and CR-V.

The Honda Elevate has been key to expanding HCIL's global footprint, driving a significant portion of the most recent export growth.

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Volkswagen UK has appointed Simon Lynch to the position of Head of Fleet Sales, effective 8 December 2025. This appointment finalises a recent restructuring of the UK team, which also includes Kevin Rendell assuming responsibility for Network Sales and Owen Shepherd moving to become Head of Product and Planning.

Lynch joins from his current role as Head of Aftersales Retailer Operations at Volkswagen Group UK. Since first joining Volkswagen Group UK in 2006, he has built a comprehensive background, holding various positions in finance, network risk, product marketing and sales, including a prior role as Head of Aftersales for Škoda.

Rod McLeod, Director, Volkswagen UK, said, “I am pleased to welcome Simon to the Volkswagen UK team and to complete my leadership team reshuffle. The next few years will be especially exciting for Volkswagen, with the launches of the ID. Polo and new T-Roc, and fleet customers are more important than ever to our brand evolution. I’m looking forward to leading the new team into 2026 and beyond.”

Lynch said, “I’m looking forward to returning to the Volkswagen brand and heading up the Fleet Sales team. Both the brand and the fleet market are in an exciting phase of change, with electrification, digitalisation and the way people buy and use cars all evolving at pace. Volkswagen has a fantastic team and I’m delighted to be playing my part in developing the UK’s best-selling brand.”

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Volkswagen Group UK has announced the appointment of Catherine Baker to its Board of Management as the new Director of One Aftersales. She will be taking over from Sylvain Charbonnier, who is leaving the UK after a four-year tenure to assume a new position within the global Volkswagen Group.

Bringing three decades of automotive industry expertise to the role, Baker has a strong commercial and strategic background. She originally joined the UK division in 2018 and has since occupied several senior positions, including her most recent role as Head of Group Parts Operations. Her career prior to Volkswagen included experience at Mercedes-Benz. Baker is also recognised as an influential advocate for diversity and inclusion within the company.

In her new capacity, she will lead the One Aftersales division, which manages all post-sale activities for the Group's five brands: SEAT, CUPRA, Škoda, Volkswagen Passenger Cars and Volkswagen Commercial Vehicles. The department’s responsibilities extend beyond daily service operations to encompass business development, the parts supply chain and technical support functions.

Damien O’Sullivan, Managing Director, Volkswagen Group UK, said, “I’m delighted to welcome Catherine to the Board and look forward to working with her in developing the next generation of aftersales propositions. I’d like to thank Sylvain for his considerable contribution and wish him well for his future in the Volkswagen Group.”

Baker said, “I’m excited to be joining the board of management at such a pivotal time. The move to electrification and digitalisation as well as evolving consumer expectations are changing the way we do business and look after our customers. I’m looking forward to taking over from Sylvain and leading the One Aftersales team into the next decade.”

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MINI India, part of the German luxury brand BMW Group, has announced that it will open the pre-launch bookings for the all-new MINI John Cooper Works Countryman ALL4 on 22 September 2025.

The MINI John Cooper Works models are known for their exhilarating performance. The Countryman ALL4 will come with a 2.0-litre four-cylinder TwinPower Turbo engine. Thanks to its all-wheel drive system, the new MINI JCW Countryman ALL4 is also very capable off the road and will be launched in India on 14 October 2025.

At present, the company has set up 11 authorised MINI dealerships in India, including Bird Automotive (Delhi & Gurugram), Bavaria Motors (Pune), EVM Autokraft (Kochi), Gallops Autohaus (Ahmedabad), Infinity Cars (Mumbai), Krishna Automobiles (Chandigarh), KUN Exclusive (Chennai), KUN Exclusive (Hyderabad), KUN Exclusive (Bengaluru) and OSL Prestige (Kolkata).

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