New Auto Rules from April 1: Car prices rise, E20 fuel rollout begins; key changes explained

New Auto Rules from April 1: Many auto companies are set to increase their vehicle prices with effect from April 1, 2026. The move comes at the start of the new financial year. Companies cite rising input costs for these moves. The price increase comes at a time when rising base metal and alloy rates -- in particular in metals like steel and aluminium -- along with rupee depreciation is eating into manufacturers' margins. Typically, weakness in the rupee makes imports more expensive. Analysts also add that geopolitical tensions have disrupted supply chains, inflating logistics and commodity prices.

Tata Motors, Honda Cars India, BMW Group India, MG Motor India and Mercedes-Benz India have announced hikes. The increase ranges from 0.5 per cent to 2 per cent.

Tata Motors announces 0.5% hike

Add Zee Business as a Preferred Source

Tata Motors in an exchange filing informed that it will increase prices of its ICE vehicles by 0.5 per cent from April 1. The hike covers petrol, diesel and CNG models.

The company said, “this revision is being undertaken to partially offset the continued increase in input costs.” It added that the increase will vary across models and variants.

Tata’s portfolio includes models such as Tiago, Nexon and Safari. Based on current prices, the increase may range between about Rs 2,285 and Rs 12,980.

Luxury carmakers cite forex, cost pressures

BMW Group India said it will increase prices by up to 2 per cent from April 1. The company attributed the hike to higher material and logistics costs and a depreciating rupee.

Mercedes-Benz India also announced a price hike of up to 2 per cent. The company said the increase is due to “sustained foreign exchange volatility and rising input costs.” This is its second hike in 2026.

Honda flags continued price revisions

Honda Cars India had already raised prices in January 2026. The company said further adjustments are likely in April due to rising input and operational costs.

Models such as Amaze, City and Elevate are impacted. Some variants have already seen increases of up to Rs 60,000 this year.

MG Motor India price hike

JSW MG Motor India has announced a price increase of up to 2 per cent across the MG portfolio.

The company has urged its customers to contact their nearest MG dealership or visit the official MG India website to get the latest information on model-specific prices.

Government mandates E20 fuel nationwide

A key policy change will also take effect from April 1. The government will make E20 fuel mandatory across all petrol pumps.

The Ministry of Petroleum and Natural Gas, in a February 2026 notification, mandated the rollout of E20 fuel across India from April 1, 2026. The fuel contains 20 per cent ethanol and 80 per cent petrol.

The government said the move aims to reduce crude oil imports and cut emissions.

E20 fuel requires a minimum 95 octane rating. Newer vehicles are largely compatible. Older vehicles may see a 3–7 per cent drop in mileage. Some may also face higher engine wear over time.