With the exciting range of autos being offered in the Indian market, the question that is being increasingly asked is about the pricing. Are Indian cars overpriced? Ravi Shankar from Chennai said that his plan to upgrade to a new car from his current stead – a 2013 model Volkswagen Polo GT TSI – threw some weird challenges. “The Hyundai Alcazar with a starting price of INR 1,700,000 and Skoda Kushaq with a starting price of INR 1,700,000 lakh look overpriced. Considering the fact that localisation has gained since I bought my Polo, the car prices should go down rather than go up. My Polo, with an imported TSI engine and a DSG transmission, cost INR 930,000 lakh. The Polo GT TSI on offer today is priced at INR 1,174,000 approximately in Chennai,” said Ravi. He added, “Should the price not go down rather than go up?” Mahesh Murthy from Bangalore said that he has postponed his plan to upgrade from his 2012 Punto. He finds the current car prices exorbitant. 

A car dealer from Delhi expressed on the condition of not revealing his name that the interpretation or inference of a product being overpriced lies with the buyer. Cars today offer more creature comforts, safety and powertrain combinations, he said. This should justify their price, he added. Stating that a sub-four metre car costing close to or more than INR 1,500,000 is discomforting, Vikram Jagtap of Pune said that cars like these fit in a tax bracket that ensures a significant tax rebate. Asked if this was because of the regulations and features, he answered that the he is not certain if the addition of technologies and features like BS VI, airbags, ABS, ESP and EBD would lead to such a price escalation. Saikat from Kolkata averred cars like the Mahindra XUV300 and Tata Nexon offer among the best safety aspects if the preconception of buying a ‘big’ car at INR 1,500,000 is set aside. They offer a long list of safety features like seven airbags, ESP, ISOFIX seats, ABS, EBD, 5-Star GNCAP rating and more, he added. 
 

Is it features?
Rohan Srivastava from Kanpur informed that the long list of features in today’s new cars is their differentiator as well as a catalyst for price increase. They, to an extent, justify the price increase. The other factors include inflation, which has in turn led to a jump in raw material prices, he added. Drawing attention to the near 40 percent jump in steel prices, which has affected his business, Srivastava said that some Indian car segments are reasonably priced. Srivastava drives a Hyundai. Neelkanth Sawant, a marketing professional from Pune, who drives a Maruti, said that car prices have kept pace with inflation. What failed to keep up with the pace are salaries in most jobs. “It is therefore that those looking to upgrade their cars seven-to-ten years down the line are finding it difficult to choose a new set of wheels costing 1.5 to two times more,” he added. Of the opinion that an INR 10,00,000 priced car of yesteryear lacked features like airbags, ABS, EBD, touchscreen, longer warranty coverage, parking sensors, auto wipers and head lamps, sun roof, climate control and connected car tech, an auto enthusiast from Hyderabad said that factor in inflation, and it is not illogical to have the current version of the same model cost INR 1,700,000.  

Raveeraj from Bangalore averred manufacturers are pricing their autos as per the customer’s willingness to pay. The fact that most cars are well-equipped does not mean that they are overpriced, he added. Ajit Powar of Pune expressed cars in India tend to be overpriced than in many other markets of the world. They also tend to differ in quality, he quipped. Is it because laws concerning autos are perhaps not as strict as in the UK or the US? Powar could not provide a definitive answer. An industry observer stated that he has seen some companies practice a culture of using different materials in cars that they export. The grade of steel they use differs, the quality and thickness of paint they use differs and even the amount of insulation or features they offer is different, he said. This, he claimed, is done to address the stringent safety and other requirements of the export markets. In terms of emissions and safety, we lag behind the European and US markets, and yet the cars made in India are priced high. This has largely to do with the taxes and high cost of doing business, he explained. Ram Naresh of Hyderabad said that the TUV300 he bought in 2017 cost him INR 1,250,000 on road. On the top of it, he paid INR 250,000 as the loan interest. He spent around INR 50,000 on accessories. The total cost came to about INR 1,550,000. What he spent on diesel, service, spares, insurance etc. would amount to another INR 150,000 to INR two-lakh. Looking at upgrading to a new car, he is finding the prospect of spending INR 150,000 on a sub-four metre vehicle weird. 

Inflation, weak Indian rupee, taxes, policies or greed?
Ram Naresh’s search of the low-end versions of cars has made him conclude that they are overpriced. “The Harrier XE, for example, is quite bare bone,” he said. “I have decided to postpone my decision to buy a new vehicle. I am now looking for a used car instead,” he added. Blaming inflation, weakening Indian rupee, the greed of automakers to make huge profits and the knee jerk reaction of authorities, Rohit from Indore said that it is high time cars are looked upon as a necessity and taxed accordingly. Bala from Chennai averred that tax policies have led to a great extent for cars to be highly overpriced. Electric cars are also not being spared, he rued. Look at the prices of electric cars and it does not look like the government is encouraging them, he quipped. Dev Tahalwani, who operates a three-wheeler, said that he finds the price of the new Mahindra Treo Zor electric three-wheeler high. And, if I avail finance, the cost is going further up, he complained. Expressing surprise over the recent EY survey report about buyers being ready to pay a premium of up to 20 percent, an industry source mentioned that the price of electric cars on offer in India is definitely high. The operating costs of such vehicles, their range, their reliability and their usability in terms of infrastructure are values that are yet not clear. 
 

Checks and balances?
Of the opinion that law makers in US and Europe are far more aware and sensitive to the sentiments of buyers and the general public, an industry observer said that the situation in India has not matured as much. The level of checks and balances governing automakers in the US and Europe are simply not there, he added. Stating that inflation, depreciating Indian rupee, ever increasing taxes, availability of high tenure loans and stagnating incomes have already driven car prices to insane levels, Robin from Chennai mentioned that a good upgrade for a reasonable amount after four-to-five years is no longer in sight. Sanchit Chari from Bangalore said, “Taxes have remained the same for the last few years. When GST was rolled out, the rates were set to what the combination of pre-GST rates were (VAT, state taxes etc.). So, they are not the cause of price hikes. Their increase has been one-to-two percent, whereas the car prices have moved up by almost 30 to 50 percent during the same period.” “It needs to be investigated if the addition of safety and emission technologies as well as features would lead to an increase in prices to such a level,” he averred. Rajesh Tandel from Mumbai drew attention to the price escalation in some of the long running cars in India like the Toyota Innova. In 2005, the vehicle was launched at a starting price which was no more than INR seven lakh, he said. Today, he mentioned, the starting price of the same vehicle is no less than INR 1,600,000 lakh. An increase of INR eight-lakh for a product line that is not drastically different from that of 2005 is hard to grasp, he added. 

A Delhi-based industry source expressed that the level of taxes on an automobile (there’s GST and a compensation cess of 48 percent, the enormous registration tax that is a state subject and continues to rise time and again), regulatory requirements and the cost of doing business are responsible for the costs rising so much and so often in at least the last one year. The average buying capacity of an Indian buyer has not risen in line, he informed. Explaining that INR 10,00,000 (roughly USD 13,000) is more or less the same amount of money incurred to develop a modern car – a compact SUV or a typical sedan – in comparison to other markets the world over, the source said that it is the tax component that needs to be looked at. Of the opinion that taxes would amount to a good portion of the prices paid to buy cars, Rohit remarked, “The increase in car prices is mainly due to base increases by manufacturers. Taxes are a percentage of base price and increase as the base price increases.” “If one wants to compare prices of cars with those that are also found in the US, he or she could compare the ex-showroom price there and the ex-showroom price here,” he explained. Doing the same some years ago, Rohit concluded that the base price of a car in India is a bit higher than in the US. This, despite the higher labour and regulatory cost in that country. 

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Automotive major Stellantis has announced the formation of the Europe Supplier Advisory Council, a forum intended to increase collaboration between the carmaker and its supply chain. The council brings together senior Stellantis leadership and 26 supplier partners representing various automotive technologies and commodities.

The council will convene for three sessions during 2026, with each meeting lasting 1.5 days. The initiative includes participation from major European supplier associations, ANFIA and FIEV, to provide a collective voice for the regional supply base.

The Council's primary functions include:

• Operational Efficiency: Identifying bottlenecks and improvement opportunities across the value chain.
• Strategic Workstreams: Establishing joint Stellantis-supplier groups focused on production planning, cost competitiveness and operational excellence.
• Innovation Readiness: Accelerating the deployment of new technologies and ensuring launch readiness for future vehicle programmes.
• Regulatory Alignment: Addressing European Union regulatory requirements and geopolitical instability.

The council is designed to modernise supplier partnerships amid technological shifts and market volatility. By co-leading workstreams, Stellantis and its partners aim to align performance expectations and enhance the resilience of the European manufacturing and R&D platforms.

Emanuele Cappellano, COO, Stellantis Europe, said, “The launch of the Europe Supplier Advisory Council represents an important milestone in our journey to strengthen the region’s industrial performance. Today, more than ever, our success depends on deep collaboration with our supplier partners. By creating a shared forum where we openly discuss challenges and opportunities, we are building the foundation for faster execution, stronger competitiveness, and sustainable growth across Europe.”

Stephane Dubs, SVP of Purchasing and Supplier Quality for Stellantis Europe, added, “Our suppliers are essential contributors to Stellantis’ transformation. This new Council allows us to work side-by-side, with transparency and respect, to co-create solutions that benefit both sides. Together, we will address the critical issues shaping our industry—whether in quality, launch readiness, cost competitiveness, innovation, or supply chain resilience—and turn them into strategic advantages for our entire ecosystem.”

Jean-Louis Pech, President, FIEV, commented, “FIEV welcomes the opportunity to join Stellantis Supplier Advisory Council, which represents a valuable opportunity to strengthen our relationship and enrich the dialogue with suppliers. This participation will enable us to represent, with ANFIA, the collective voice of suppliers and actively contribute to the Council’s work.”

Marco Stella, President, ANFIA Components Group and Vice-President of ANFIA, stated, “Now more than ever, it is essential to invest in a fruitful partnership between Stellantis and the supply chain ecosystem, caught between European market weakness, geopolitical instability and fierceful competition, also to face united and together EU regulatory challenges and support EU manufacturing and R&D platforms.”

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Spinny, an Indian full-stack used car platform, has announced that it recorded a threefold increase in vehicle deliveries on Gudi Padwa compared to standard operating days. The surge indicates a trend of consumers aligning automotive purchases with festive milestones.

The festive period saw a 50 percent increase in footfall across Spinny Car Hubs in the days leading up to the holiday. Its data suggests that 86 percent of customers experienced a standard delivery process despite the heightened activity.

Regional demand was concentrated in western and southern India:

• Maharashtra: Pune and Mumbai recorded over six times their average daily delivery volumes, with each city serving more than 100 customers in a single day.
• Geographic Contribution: Maharashtra, Andhra Pradesh, Telangana and Karnataka collectively accounted for 70 percent of total deliveries on the day.

In terms of demand trends, Hyundai Motor India and Maruti Suzuki India were the most preferred auto brands, while Hyundai Grand i10 was the most purchased vehicle. White remained the most popular exterior colour across all markets. It saw 53 percent of buyers utilised credit solutions to fund their purchases, reflecting a shift towards structured ownership.

Hanish Yadav, Senior Vice-President, Spinny, said, “Gudi Padwa holds deep cultural significance as a time of renewal and new beginnings. We are witnessing more customers align their car-buying journeys with such meaningful occasions. The strong surge in deliveries and increased engagement across our hubs reflects both evolving consumer intent and the trust placed in Spinny. Our focus remains on ensuring a transparent, reliable, and high-quality experience - regardless of demand cycles.”

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Renault India has officially released the ARAI-certified fuel efficiency figures for the newly launched Duster, which is now powered by the Turbo TCe 160 engine. This latest iteration of the SUV delivers a fuel economy rating of 18.45 kmpl when paired with the DCT automatic gearbox, while the version equipped with the six-speed manual transmission achieves a rating of 17.75 kmpl.

Developed specifically to suit Indian driving conditions, the vehicle combines robust performance with what Renault describes as best-in-class ride and handling characteristics. At the heart of the Duster is a turbo-petrol unit that generates 163 PS of power along with 280 Nm of torque, securing its position as the most powerful engine in its category.

Through intelligent engineering and a carefully optimised powertrain, Renault has managed to create a compelling balance that merges high output with segment-leading fuel efficiency, ensuring drivers do not have to compromise between spirited performance and economical running.

Dr V Vikraman, Chief of Renault Engineering, Renault Group India, said, “The ARAI-certified figures highlight the strength of our technology and our commitment to delivering superior all-round value. New Renault Duster’s Turbo 160 engine integrates advanced solutions such as low-friction coatings and high-pressure fuel injection to optimise combustion and efficiency. Paired with Renault’s latest DCT automatic transmission, which ensures fast and seamless gear shifts, the powertrain delivers an excellent balance of performance and fuel efficiency while remaining strong and responsive on the road.”

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South Korean automotive major Hyundai Motor Company has named Bradley J. Arnold as Chief Designer and Head of Hyundai Design North America (HDNA) in Irvine, California.

He will oversee vehicle and concept design for the North American market, focusing on the company’s design-led strategy.

Arnold rejoined Hyundai in 2016 and has held various leadership roles within the California studio. Since 2021, he led the exterior design team, contributing to the 2023 Hyundai Palisade facelift and the 2022 Hyundai Santa Cruz. His previous experience includes:

• Hyundai (2008–2011): Contributions to the Hyundai Genesis Coupe exterior and Hyundai Curb Concept interior.
• General Motors Design (2011–2016): Work on the Cadillac Elmiraj Concept, Chevrolet Tru 140S, and mobility concepts.
• Academic: Graduate of and former instructor at the ArtCenter College of Design.

In 2025, Arnold served as interim design head at HDNA, where he managed the development of production and concept vehicles. He directed the global XRT off-road strategy within 'The Sandbox,' a design hub at the California studio.

Under his guidance, this facility has produced the 2026 Palisade XRT PRO, the CRATER Concept, and upcoming XRT models scheduled for production.

Luc Donckerwolke, Executive Vice-President and Chief Creative Officer, Hyundai Motor Group, said, “Design is the clearest expression of our ambition as a brand. Brad brings clarity, courage, and a strong connection to North American customers. His leadership will be instrumental as Hyundai Design North America shapes vehicles that are both emotionally engaging and globally relevant.”

SangYup Lee, Executive Vice-President and Head of Hyundai and Genesis Global Design, commented, “With more than 18 years of experience working with highly respected global automotive brands, Brad brings an exceptional level of creative leadership and vision. We are excited to have him lead Hyundai Design North America and build on the strong momentum of our vehicle design direction.”

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