If you’ve been delaying your car purchase, the final days of March could be your best opportunity. Starting April 1, several automakers are set to roll out price hikes, ending what remains of the current pricing window.
At least half a dozen manufacturers have either confirmed or are actively evaluating price increases effective next week. For some, this marks the second hike within the same financial year. Tata Motors has already announced a 0.5% increase across its ICE passenger vehicle range from April 1, citing rising input costs as the primary reason.
Earlier this month, luxury carmakers Mercedes-Benz, BMW, and Audi confirmed price hikes of up to 2%. Notably, both Mercedes-Benz and BMW had already raised prices in January, signaling sustained cost pressures. Meanwhile, Maruti Suzuki is still reviewing a potential increase, while Hyundai—which implemented a 0.6% hike earlier this year—is expected to follow suit.
Rising costs driving the hikes
The upcoming price revisions are being driven by a combination of global and domestic pressures. Commodity prices, particularly aluminium and steel, have surged significantly. According to industry data, aluminium prices rose over 16% year-on-year in February 2026, impacted by disruptions in key global supply routes. Given that the automotive sector accounts for a substantial share of aluminium consumption, the impact on manufacturing costs has been immediate.
Steel prices tell a similar story. Hot-rolled (HR) steel, widely used in car bodies, has seen double-digit growth compared to last year, while cold-rolled (CR) steel used in precision components has also recorded sharp increases.
Currency fluctuations are adding to the pressure. The Indian rupee recently hit record lows against the US dollar, while depreciation against the euro has been even more pronounced—significantly affecting import-heavy and luxury carmakers.
Policy changes add to buyer burden
On the domestic front, policy changes are further compounding costs. From April 1, Maharashtra will implement a 1% increase in road tax on CNG and LPG vehicles. This creates a dual impact: a higher ex-showroom price raises the base for taxation, while the increased tax rate further inflates the final on-road cost.
Limited time for buyers
With rising input costs, currency depreciation, and regulatory changes converging, automakers have little room left to absorb expenses. For buyers, this means the current pricing window is rapidly closing—making the end of March a crucial period to lock in better deals before prices move up once again.
