Car Prices May Jump In 2026: Why India's Record Sales Boom Could Still Hit Your Wallet

India’s auto sector posted record festive sales and soaring investments, but rising freight and commodity costs may force automakers to consider price hikes as early as January 2026.

October 2025 was a month driven by the festivals of Dussehra, Dhanteras and Diwali, further complemented by the positive impact of GST 2.0 reforms.

Source : ABPLIVE AI

Indian consumers may have to pour out more from their wallets to purchase automobiles as the industry (original equipment manufacturers) might need to consider price hikes in January 2026 to offset challenges of high freight rates and commodity costs, according to Nomura Ratings, just past the key festive months which saw passenger vehicles, two and three-wheeler segments posting their highest ever wholesales in October 2025, buoyed by consumer demand and the recent GST rate reduction. October