Buy Before March 31st or Pay More: Car Prices Set to Rise from April 1, 2025

If you are on the market for a car or SUV, the clock is ticking fast. All big car makers have announced significant price hikes effective April 1, 2025. Industry giants such as Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, and Kia India are set to increase vehicle prices by up to 4%, citing rising input costs, operational expenses, and regulatory pressures. If you are on the fence about purchasing a new car, the next week is all you have to buy and save some serious money.

Expected Price Hikes Across Segments

Budget Hatchbacks to Get Pricier

Entry-level models will see noticeable price increases, impacting budget-conscious consumers the most. Maruti Suzuki, the leader in this segment, plans to hike prices by up to 4% across its range. Models such as the Alto K10, S-Presso, and WagonR will see increases of up to ₹19,500, ₹5,000, and ₹15,000, respectively. Hyundai’s Grand i10 Nios and i20 will also be affected by hikes of up to 3%.

Mid-Range Sedans and SUVs Facing Bigger Jumps

The mid-range and premium segments will not be spared either. Popular models such as the Maruti Swift, Baleno, and Brezza will see price hikes ranging from ₹5,000 to ₹30,000. Hyundai’s bestselling Creta, Venue, and Exter will all experience price increases of up to 3%. Tata Motors has announced hikes across its entire passenger vehicle lineup, including models like the Tiago, Tigor, Altroz, Punch, Nexon, Curvv, Harrier, and Safari.

Luxury brands such as Mercedes-Benz, BMW, and Audi have also confirmed price hikes of up to 3%, attributing the increase to rising material costs, fluctuating commodity prices, and higher logistics expenses.

Mixed Signals for Electric Vehicles

The EV market presents a complex pricing scenario. Tata Motors, India’s leading EV manufacturer, will increase prices across its electric lineup, including the Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, and Curvv.ev. However, this comes at a time when battery costs are expected to decline by nearly 50% by 2026.

Government subsidies under the FAME II scheme continue to provide relief, offering incentives for electric two-wheelers and cars. Various state-level benefits, including road tax and registration fee exemptions, further help offset rising EV costs.

Why Are Car Prices Increasing?

Stricter Regulations Driving Up Costs

One of the key reasons for the April price hikes is the implementation of stricter emission and safety regulations. The new BS7 emission norms, comparable to Europe’s Euro 7 standards, will begin rolling out in 2025-2026, requiring manufacturers to adopt advanced emission control technologies. These norms will enforce stricter pollution limits, real-time monitoring systems, and, for the first time in India, regulate particulate emissions from tires and brakes.

Additionally, Corporate Average Fuel Economy (CAFE) standards will require automakers to reduce carbon emissions to 91.7 gm CO2/km by April 2027. Non-compliance could result in penalties ranging from ₹25,000 to ₹50,000 per vehicle. Meanwhile, new safety regulations taking effect in 2025 mandate features like air conditioning in commercial vehicle cabins and advanced safety systems, including blind spot detection, emergency braking, and roll-over protection. These requirements are leading to significant investments in research, development, and production modifications.

Rising Raw Material Costs

The automotive industry is grappling with dramatic increases in raw material prices. Steel prices have surged by 36% year-over-year, aluminum by 49%, and copper by a staggering 89%. For electric vehicles, battery materials have also seen steep hikes: lithium up 52%, cobalt up 42%, and nickel up 45%.

Compounding the issue, new 25% tariffs on steel and aluminum, implemented in 2025, are further escalating costs for manufacturers. These tariffs add another layer of financial pressure, making production more expensive across the board.

Exchange Rate Fluctuations and Inflation Impact

Currency volatility is another factor driving up car prices, particularly for companies relying on imported components. Mercedes-Benz India has cited the weakening rupee against the euro as a primary reason for its planned price hike in April. The euro’s exchange rate has climbed significantly, making imported parts costlier.

Inflation is also playing a major role. Between 2019 and 2024, car prices have increased by 34% on average, substantially outpacing the overall inflation rate of 23%. Some manufacturers, such as Hyundai and Kia, have seen even steeper price increases, making new cars less affordable for many buyers.

Should You Buy Before March 31st?

Benefits of Buying Now

The most immediate advantage of purchasing before the deadline is avoiding the 2-4% price hike, which can translate to substantial savings. For example, on a ₹10 lakh car, a 4% increase means an additional ₹40,000.

March 2025 also presents attractive discounts as dealers rush to clear inventory before prices go up. Maruti Suzuki is offering discounts of up to ₹82,100 on models like the Alto K10 and S-Presso. Hyundai has discounts of up to ₹68,000 on models like the Exter and Venue, while Tata Motors is providing benefits of up to ₹1.23 lakh on certain models. These deals include cash discounts, exchange bonuses, and corporate/loyalty benefits.

Another factor to consider is delivery timelines. Popular models already have long waiting periods, and demand is expected to surge as buyers rush to beat the price hikes. Some models, such as the Toyota Urban Cruiser Hyryder, have waiting periods extending up to 10 months in certain cities. Inventory levels are currently at 50 days instead of the optimal 30 days, indicating potential future delays.

Key Considerations Before Making a Decision

While the urgency to buy before the deadline is understandable, there are some factors to weigh before making a purchase. Check the availability of your preferred model and variant, as some already have extended waiting periods.

Additionally, consider whether upcoming model launches or facelifts might make waiting worthwhile despite the price hike. For buyers focused on resale value, pre-registered vehicles (where the dealer is the first owner) offer significant discounts with minimal long-term depreciation concerns.

Take Advantage of Year-end Discounts

With just days remaining before the price hike takes effect, the financial incentive to buy now is clear. Consumers looking to purchase a new vehicle can benefit from existing discounts, avoid paying higher prices in April, and potentially sidestep longer waiting periods. While individual circumstances vary, for most buyers, acting before March 31st presents the most cost-effective option. If you’re in the market for a new car, now is the time to make your move before prices go up.