Good news for car buyers: Mahindra says ‘no price hike’ for Jan 2026; Will rivals follow?

Mahindra & Mahindra on Thursday said it is not looking to increase vehicle prices from January 2026, bucking the industry trend of annual hikes unless there is a sharp escalation in input costs.

Carmakers typically announce price increases at the start of the calendar year, but M&M Executive Director and CEO (Auto & Farm Sectors) Rajesh Jejurikar said the company will do so only if there is a “visible and tangible” rise in raw material costs.

“We will not take price hikes right now, unless they are driven by a significant raw material price,” Jejurikar told reporters.

He was responding to a query on whether the company planned a January hike.

He stressed that the recent GST rationalisation, which led to a reduction in on-road prices across segments, remains a key factor in the company’s stance.

“We are very mindful that the country has taken a very significant milestone action of reducing GST, and we will not do anything which undermines that strategy by driving a profiteering objective to take prices up,” he said.

"So we will take prices up only if there is a very visible and tangible increase in manufacturing cost. We will not announce a price increase just because that's the typical habit," he added.

The GST Council’s rate restructuring moved most small and mid-segment cars into the lower 18% bracket from 28%, while large SUVs and luxury cars saw effective levies fall to a flat 40% from around 50%.

Carmakers have since passed on the benefits with price cuts effective September 22.

Price hike in Jan 2025

Hyundai raised prices by up to ₹25,000 from January 1, 2025, citing higher raw material and logistics expenses. Maruti Suzuki also increased prices by up to 4% at the start of the year.

With M&M signalling a pause on price hikes for 2026, it remains to be seen whether competitors will follow suit or continue with the customary annual upward revisions.