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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Honda Cars India has launched a new variant of its popular mid-size sedan, the Honda City Sport, adding a dynamic and youthful edge to the City line-up. Priced at INR 1.48 million (ex-showroom, Delhi), the City Sport is positioned as a limited-edition offering designed to appeal to style-conscious, spirited drivers.

The new variant will be exclusively available with a CVT automatic transmission and is offered in three colour options — Radiant Red Metallic, Platinum White Pearl, and Meteoroid Gray Metallic.

Sporting a blacked-out exterior theme, the car features a Sporty Black Grille, Glossy Black Shark Fin Antenna, Trunk Lip Spoiler and multi-spoke grey alloy wheels. Inside, the cabin gets an all-black treatment with red stitching, leather seats and ambient lighting for a premium, performance-inspired feel.

Under the hood, it retains the 1.5L i-VTEC petrol engine, delivering 121 PS and 145 Nm of torque, with a claimed fuel efficiency of 18.4 kmpl. The model also comes equipped with Honda Sensing, the brand’s advanced driver assistance suite.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “The new City Sport has been crafted to meet the aspirations of young buyers who value individuality and a spirited driving experience. It embodies a perfect blend of sporty exterior and interior style, fun to drive performance and the everyday usability that Honda City is known for, at a price that makes it even more compelling.”

The City Sport is being positioned as a limited-unit, exclusive edition for customers seeking distinction in both design and driving dynamics.

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Maruti Suzuki India (MSIL), the country’s largest passenger vehicle manufacturer, has is celebrating the 20^th anniversary for its premium hatchback the Maruti Suzuki Swift.

It was in May 2005, the Swift marked its India debut, which at that time was amongst the most premium sporty hatchback available to customers, thus carving out a niche amongst its peers.

Over the years, the Swift has been updated with new design language and technology. In 2011, Maruti Suzuki India introduced lighter and agile 2^nd generation Swift, the 3^rd generation was introduced in 2018 and last year the Swift was introduced with the new Z-series engine in its 4th generation avatar.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India, said, “The Swift is an icon in its own right. Celebrated by over 3 million customers in India alone, the Swift is an expression of fun and freedom. The Swift has set new benchmarks over the years with every new model, improving on the inherent ‘fun-to-drive’ DNA. This ever so special nature of the Swift has ensured that nearly one out of every four Swift owners come back to buy another Swift. Today, it enjoys an admirable 31 percent market share in its segment, contributing to over 10 percent of MSIL sales. On this special 20-year anniversary, we would like to thank all our customers for their unwavering love for brand Swift.”

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Luxury carmaker Mercedes-Benz India has launched the EQS 580 4MATIC 'Celebration Edition’, an upgraded version of its flagship EQS 580 4MATIC sedan.

This special edition commemorates the brand’s growing success in the battery electric vehicle (BEV) segment, driven by high-end models and celebrates the EQS range’s position as a benchmark in luxury BEVs. The EQS boasts cutting-edge technology, including the ‘MBUX Hyperscreen’, opulent interiors and an industry-leading range for electric vehicles in India. The ‘Celebration Edition’ enhances rear-seat luxury, offering best-in-class comfort, space and an elevated experience for discerning customers.

Simultaneously, Mercedes-Benz inaugurated the ‘Atelier Experience’ at Sundaram Motors in Adyar, Chennai, expanding its premium retail network across key metros like New Delhi, Mumbai and Hyderabad. This facility underscores the brand’s commitment to bespoke luxury, featuring personalised consultations and modern retail concepts. Strategically located in an upscale neighbourhood with strong luxury customer presence, the 3,800 sq. ft. showroom spans a 7,500 sq. ft. plot, offering flexible displays for sub-brands like Maybach, AMG and G-Class. The design allows effortless brand element transitions, maximizing premium showcase impact.

Aligned with its ‘go to customer’ strategy, Mercedes-Benz is expanding into emerging mini-metros, planning 30 new or upgraded luxury touchpoints in 2025, with 19 set to launch in the next five months. This initiative reinforces the brand’s focus on accessibility and elite retail experiences.

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said, "We are excited to launch the EQS 580 'Celebration Edition' alongside our strategic network expansion in Chennai. This dual announcement exemplifies Mercedes-Benz's deep commitment to uphold both product excellence and customer experience. The EQS 'Celebration Edition' signifies growing customer interest in our top-end BEVs, as we continue to outpace the market growth, regularly upgrading our luxury BEV portfolio. Our BEV growth is strongly driven by demand for top-end BEVs comprising EQS sedan and SUV, EQS Maybach SUV and the G 580 with EQ Technology. Similarly, qualitative network expansion demonstrates our customer commitment beyond luxury products, introducing boutique luxury experiences in established metropolises like Chennai.

“After the highly exclusive Maybach Lounge in Hyderabad, the G-Lounge in New Delhi, we are now introducing the bespoke ‘Atelier Experience’ in Mumbai and in Chennai, where discerning customers can configure their cars with MANUFAKTUR range of customization options. Hyper-personalisation is an emerging trend at the top-end luxury segment, and with exclusive Maybach Kit and G-Class Kit comprising physical material samples combined with state-of-art online configurator, customers can have a physi-digital experience, while configuring their personalised top-end Mercedes-Benz car.”

Sharath Vijayaraghavan, Executive Director, Sundaram Motors, said, “We are extremely proud of our association with Mercedes-Benz known for its innovation, Leadership & Strong Legacy. With both brands having vintage over 100 years, the shared values of both the companies have paved the way for such formidable partnership of 25 years with several more years to come. Our eleven facilities are designed for customer convenience, and our eleven Sundaram Signature Service offerings provide flexible support to meet any additional customer requirements.”

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Vietnamese automotive brand VinFast has announced its collaboration with Global Assure to strengthen its customer service network across India. The automaker aims to strengthen its aftersales service network before formally introducing its products in the Indian market.

As part of the understanding, Global Assure will oversee the seamless delivery of essential customer care services, including a dedicated 24x7 call centre, nationwide Roadside Assistance (RSA), Mobile charging solutions and on-demand Mobile service operations. These services will be accessible to VinFast customers across the country, ensuring quick, reliable, and convenient support, anytime and anywhere.

Pham Sanh Chau, CEO – Asia, VinFast, said, “As VinFast is gearing up to launch its premium electric SUVs – the VF 7 and VF 6 in India market, this partnership underlines the brand’s commitment to ensure prompt, dependable and customer-focused support across the country. Global Assure’s strong capabilities and nationwide reach are well aligned with our commitment to quality, convenience and care. Together, we aim to establish a holistic and reliable electric mobility ecosystem in India that extends beyond our vehicles to offer true peace of mind for our customers.”

Manish Vij, Co-founder & CEO, Global Assure, said, “We are excited to be the trusted partner of VinFast’s customer support in India. With Global Assure’s extensive expertise in deep understanding of Indian customer needs and pan-India presence, VinFast customers can expect efficient response times and high-quality service making every journey smoother, safer, and more reassuring for VinFast owners.”

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