Two of India’s leading automakers, Maruti Suzuki and Honda Cars India, have announced plans to raise vehicle prices effective April 8, 2025, citing escalating input costs, new regulatory requirements, and economic uncertainties tied to global trade developments. The price hikes come at a challenging time for consumers, as U.S. President Donald Trump’s newly imposed tariffs—including a 26% duty on Indian imports—threaten to further disrupt supply chains and inflate costs across the automotive sector.
Maruti Suzuki, India’s largest car manufacturer by market share, stated that the price increase will vary across its model lineup, with hikes expected to range between 2% and 4%. The company attributed the decision to rising costs of raw materials like steel and aluminum, coupled with stricter emission and safety norms mandated by the Indian government. “We have absorbed cost increases for as long as possible, but the current environment necessitates a partial pass-through to customers,” a Maruti Suzuki spokesperson said in a statement.
Honda Cars India echoed similar sentiments, announcing a price adjustment of up to 3% across its portfolio, including popular models like the City and Elevate. The company highlighted additional pressures from supply chain disruptions and the weakening Indian rupee, which has depreciated amid global market volatility following the U.S. tariff announcement. “These adjustments are essential to maintain our operational sustainability,” a Honda representative noted.
The timing of the price hikes adds to consumer woes, as the automotive industry braces for potential ripple effects from the U.S. tariffs. Analysts warn that higher import duties could increase the cost of components sourced globally, particularly for automakers reliant on international supply chains. While Maruti Suzuki and Honda primarily cater to India’s domestic market, the broader economic uncertainty could dampen demand, which has already shown signs of softening in recent months.
Industry experts suggest that other automakers, such as Tata Motors and Hyundai, may follow suit with their own price revisions in the coming weeks. The move comes as India’s auto sector navigates a delicate balance between cost management and maintaining affordability, with passenger vehicle sales projected to grow modestly in FY25 despite these headwinds.
For now, buyers have a narrow window to purchase vehicles at current prices before the April 8 deadline. However, with inflation concerns mounting and trade tensions escalating, the road ahead for both automakers and consumers looks increasingly bumpy.
