Auto Costs Rise As Hyundai Revises Prices

Hyundai Motor India will increase prices across its model range by a weighted average of about 0.6% from January 1, 2026. The company has cited higher costs of precious metals and commodities.

Hyundai said it had absorbed cost increases internally until now. That room has narrowed. With input prices still rising, a price revision was unavoidable, the company said.

The increase applies across the range. Small cars such as the Grand i10 Nios are affected, as are key SUVs like Creta and premium electric models, including the Ioniq 5.

In September, Hyundai had cut prices on several models after GST rates were cut. Some of those reductions were sizeable. The January increase takes back part of that relief. As the industry enters 2026, the question is whether this is a routine reset or the early sign of a tougher cost environment.

Are Other Car makers Also Raising Prices?

Hyundai is not alone. Several manufacturers have already announced price hikes effective January. These include Renault, Nissan, Honda, and JSW MG Motor. Luxury brands such as Mercedes-Benz and BMW have also signalled increases.

January price revisions are standard in the Indian auto market, often followed by another round in April. What stands out this time is the reason being offered. Across companies, the explanation is largely the same: costs are moving up again.

What is Driving Higher Costs Across the Auto Sector?

Analysts have identified metals as the primary pressure point.

Aluminium and copper prices have risen between 10% and 25% over the past three months. Supply constraints and trade disruptions have played a role. Demand from energy transition-linked sectors has added to the pressure.

Platinum group metals have moved even faster. Used in catalytic converters, prices are up more than 50%. Years of underinvestment in mining and tight supply have caught up with the market.

There has been some offset. Steel and rubber prices have eased. But analysts say the benefit is limited and does not compensate for the sharp rise in base and precious metals.

How Much of This Can Carmakers Pass On?

Spreading the hike across categories, from the high-volume to the price-sensitive ones, lessens its overall impact. At less than 1%, Hyundai’s increase in prices is just about noticeable, but not disruptive.

However, component makers with a focus on particular metals may face a greater strain, as suppliers often work under long-term contracts with limited pricing flexibility, thinning their margins.

What Does This Mean for Buyers and Investors?

As far as the customers are concerned, the difference is minimal in the initial phase. A sub-1% rise means only a marginal variation in the end prices.

For the investor, cost pressure has returned to the agenda, and this is when pricing power is constrained.

While metal prices are high and demand is still spotty, what happens next will depend on whether auto manufacturers will be able to protect their profit structure or stretch consumers' budgets in 2026.

Sources

Economic Times
Moneycontrol
Business Standard