JSW MG Motor India announced on Thursday that it will raise vehicle prices by up to 2 percent starting January 1, 2026, to address increasing input costs. The price change will vary based on specific models and variants. The automaker attributed this decision to rising input expenses and broader macroeconomic conditions.
This announcement follows the recent unveiling of the updated Hector model in India, which features a refreshed exterior including a modern grille, new wheels, and an updated rear bumper. Notably, the new Hector is priced Rs 2.1 lakh lower than its predecessor, enhancing its appeal to potential buyers.
In an industry context, MG India is not the only manufacturer making pricing adjustments; luxury automotive brands Mercedes-Benz India and BMW have also indicated price increases scheduled for next month. BMW’s Indian lineup, which includes luxury sedans, SUVs, and electric vehicles, ranges from the 2 Series Gran Coupe priced at Rs 45.3 lakh to the XM at Rs 2.54 crore.
Hardeep Singh Brar, President and CEO of BMW India, discussed the influence of currency fluctuations on pricing strategies:
“Forex fluctuation is a major headwind. We anticipated the rupee to be around 93 to 95 against the Euro this year, but it has actually hovered between 103 and 105. This 10 percent deterioration relative to our expectations puts immense pressure on our pricing and profitability,” he stated.
Brar emphasized that despite not initially planning a price increase—even in light of new GST rates—the depreciation of the rupee has made existing price levels unsustainable, adding, “The Euro has been extremely unfavorable… we are being forced to consider this increase to protect our bottom line.”
Mercedes-Benz India also confirmed earlier this year that it would implement a price increase in early 2025 to mitigate the effects of the weakened rupee against both the Euro and the Dollar.
