Big news for car lovers! The government cut the GST on cars up to 4 metres long and with engines up to 1,200cc from a hefty 28% to just 18%. On top of that, the extra cess was removed. This price cut caused a buzz, and carmakers saw a boom in sales, especially for small cars. "We will not be increasing vehicle prices in Q3 (October-December) because of the GST price cut, but price hikes will happen in Q4 (January-March)," said Shailesh Chandra, Managing Director & CEO of Tata Motors Passenger Vehicles Ltd. This means prices could rise early next year. But why the coming hike? Commodity prices, including precious metals used in cars, have jumped by 1% quarter after quarter. According to a report from Nomura, these rising costs mean car makers need to raise prices to protect their profits. Nitin Kohli, Brand Director of Volkswagen India, explained, "Anything that goes into vehicle making affects the price. If costs rise, the OEM or the buyer has to bear it. This has been the trend for years." The festive season and GST cuts did bring a fresh wave of buyers. However, the exchange rate is tricky. The Rupee's weakening means luxury car makers like Mercedes-Benz might hike prices too. Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, said, "We have not kept any profits from GST cuts, hoping demand would grow. But because of the currency dip, price hikes are expected early next year. This can affect buyers' feelings and buying habits." So, while small cars got cheaper and sales soared, a storm of price hikes looms ahead in 2026. Watch out, car fans, the wheels of price keep turning!