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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Czech automaker Skoda Auto India has introduced the new Kodiaq RS, the first SUV to carry the performance-focused RS badge in the Indian market at INR 6.69 million (ex-showroom).

The company limited the initial release to 50 units, which were sold out within six minutes of launch. This release aligns with the 50th anniversary of the RS badge and the 125th year of the brand’s motorsport history.

Ashish Gupta, Brand Director, Skoda Auto India, said, “The RS badge represents an iconic performance legacy. Bringing it to our flagship 4x4, all-terrain, 7-seater SUV combines luxury, capability and motorsport DNA in one offering. The overwhelming response, with all units sold out in minutes, reflects the strong enthusiasm among customers.”

The Kodiaq RS features a 2.0-litre TSI engine producing 195 kW (265 PS) and 400 Nm of torque, paired with a 7-speed DSG transmission and all-wheel drive. The vehicle accelerates from zero to 100 kmph in 6.3 seconds, with a top speed of 231 kmph.

The vehicle is equipped with progressive steering and the latest-generation Dynamic Chassis Control (DCC) Plus, which allows drivers to adjust damping characteristics. The Driving Mode Select offers multiple settings, including Eco, Comfort, Normal, Sport, Individual, Snow and a dedicated Off-Road mode.

The exterior includes black accents on the grille frame, mirrors, window frames, roof rails, and the D-pillar. The front features a bumper with black elements and a horizontal light strip in the grille. The rear includes a full-width reflector, blacked-out lettering, and stainless-steel exhaust tips. The SUV is fitted with 20-inch Elias alloy wheels and is available in Moon White, Magic Black, Velvet Red and Steel Grey.

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Honda Cars India (HCIL), a leading passenger vehicle manufacturer, has announced wholesales of 8,788 units in June 2026.

In the domestic market, the company sold 5,243 units and 3,545 units for export, which marks 71.5 percent YoY, when the company sold 4,618 units domestically and exported 506 units.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, "The launch of new City and India Premiere of global SUV Honda ZR-V has generated strong momentum for our overall sales including Amaze and Elevate during June, driven by healthy customer demand and a positive market response. With Monsoon conditions expected to improve during July, we hope to sustain this positive momentum in the months ahead.

“The deliveries of ZR-V are also scheduled to begin from July. It will draw discerning new customers and prospects into Honda showrooms, enhancing our premium brand appeal and unlocking new growth opportunities,” he added.

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French automotive company Renault India has recorded 4,063 domestic wholesale units in June 2026, a 55 percent YoY increase compared to the previous year. This also marks the 10^th consecutive month of double-digit growth for the company.

Interestingly, for H1 CY2026, the company reported sales of 25,844 units, representing 61 percent YoY growth.

During June, Renault India began exports of the Duster, dispatching 750 units to South Africa. The company stated that this performance reflects customer response to its product strategy and demand across its portfolio.

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Tata Motors Passenger Vehicles, one of the leading passenger vehicle manufacturers in the country, has reported wholesales of 63,083 units in June 2026, which was 69 percent higher than the 37,237 units sold last year. Exports for the month came at 1,007 units, as against 154 units sold last year.

For Q1 FY2026, the total wholesales came at 182,574 units, up 46 percent YoY, as against 124,809 units a year ago. Domestic sales came at 180,166 units, up 45 percent YoY, while exports came at 2,408 units, up 148 percent YoY.

 Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “Q1 FY27 has marked a strong start for Tata Motors Passenger Vehicles, delivering industry beating growth with sales of 182,574 cars and SUVs, up 46 percent YoY. This performance was fuelled by robust customer demand and the success of our recent launches. Our leadership in electric mobility further strengthened during the quarter, with EV volumes more than doubling to record 112% growth YoY. Our retail performance was equally encouraging, with Vahan registrations rising around 40 percent YoY, nearly twice the industry growth. We concluded the quarter on a high note, recording June sales of 63,083 cars and SUVs, registering a robust 69 percent growth YoY. In EVs, we achieved our highest-ever monthly sales of 14,800 units, with volumes nearly tripling YoY. The sustained momentum across both wholesale and retail channels reinforces the growing strength of our portfolio and the positive response from customers across segments. The response to the new avatars of Tiago and Punch have been overwhelming with bookings surging across powertrain, reaffirming the strength of our multi-powertrain strategy. We are seeing encouraging growth in EV adoption across segments and the strong momentum in the entry EV category signals rapid mainstreaming of electric mobility across India. While supply constraints impacted Sierra volumes during the quarter, customer interest and booking momentum remain robust. Corrective measures are currently underway to further augment production from select vendors in line with demand and this will progressively enable us to accelerate deliveries from Q2 onward. With a strong order book, exciting products and sustained customer demand, we remain confident about maintaining our growth momentum through the rest of the year.”

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