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Indian automakers are preparing for another round of price hikes as inflation in key raw materials and ongoing supply chain disruptions squeeze profit margins, even as demand recovers following the September 2025 GST rationalisation. Companies including Hyundai Motor India, Mahindra & Mahindra, and Maruti Suzuki are evaluating pricing strategies amid rising costs for steel, aluminium, copper, and platinum group metals.
Hyundai Motor India said commodity inflation trimmed its margins by 120 basis points sequentially in the last quarter, with CEO Tarun Garg confirming a price increase is likely in May. The company aims to maintain its 11-14% operating margin target through higher volumes, improved plant utilisation, and cost optimisation, including the launch of two new SUVs from its Chennai plant. Hyundai is delaying full cost pass-through, adopting a calibrated pricing approach based on market conditions.
Mahindra & Mahindra has already implemented price hikes of up to 2.5% on internal combustion SUVs and commercial vehicles from April 6, citing sustained commodity cost increases. The company’s automotive EBIT margin held at 10.9% in Q4 FY26 despite inflationary pressures. Mahindra has strengthened supply resilience through localisation, reduced single-source dependency, and a real-time intelligence desk for supply tracking and hedging, with CFO Amarjyoti Barua indicating further increases if structural supply constraints persist.
Maruti Suzuki, seeing strong demand rebound in small and entry-level cars post-GST cuts, is under pressure to raise prices despite targeting affordability. Sales of hatchbacks rose 75% year-on-year in April, with mini car volumes more than doubling. Senior executive Partho Banerjee said the company delayed price hikes to support first-time buyers but will soon review increases as rising costs strain margins.
Hyundai, Mahindra, and Maruti Suzuki all expect to continue monitoring commodity markets and supply chain conditions in May, with official reviews and potential pricing decisions expected in the coming weeks as they balance cost recovery against consumer affordability.