JSW MG Motor India Set To Hike Prices Amid Rising Costs From July Onwards

Indian car buyers may need to brace for a price increase as JSW MG Motor India is set to revise prices across selected models beginning 1 July 2025. The decision stems from mounting input costs and broader economic fluctuations that continue to impact the automotive industry. While specific models have not been named, the hike will reportedly affect both internal combustion and electric variants. This latest move follows a previous revision just months earlier, underlining a persistent challenge for automakers operating in a volatile global and domestic environment.

Economic Strains Prompt Second Price Revision In Seven Months

This is not the first price adjustment by MG Motor in recent times. The upcoming increase will mark the second such revision in under a year, with the last hike implemented in December 2024. That round saw prices rise across the portfolio by up to 3 percent. The rationale behind the July revision is consistent with the earlier one—an attempt to partially offset increased manufacturing and logistics costs. Industry insiders note that rising commodity prices and supply chain disruptions are forcing manufacturers to recalibrate their pricing strategies.

Price Hike To Apply Selectively Across Line-Up

While the company has confirmed that the new pricing structure will come into effect from the start of July, it has not disclosed which specific models will be impacted. MG’s current line-up in India includes popular ICE models such as the Astor, Hector, and Gloster, as well as electric vehicles like the Comet EV, ZS EV, and the newly launched Windsor EV. Given the diversity of its portfolio, buyers of both petrol/diesel and EV options may be affected.

Experts suggest that the incremental rise is likely to vary between variants, depending on production costs, material inputs, and technology used in each model. This lack of model-specific clarity leaves potential buyers in a wait-and-watch mode as the new pricing details are expected to be made public closer to the implementation date.

ZS EV Sees Strategic Price Cut Despite Broader Hike Trend

Interestingly, while a general price increase looms, MG recently announced significant price reductions for its electric SUV, the ZS EV. Marking its sixth year in India, the brand introduced revised pricing across all four trims of the ZS EV range. The Executive variant now starts at Rs 16.75 lakh (ex-showroom), reflecting a Rs 13,000 drop. The top-spec Essence model sees a steep reduction of Rs 4.44 lakh, bringing its new price to Rs 20.49 lakh. Other variants like the Exclusive Plus and Excite Pro have also become more affordable, with reductions of Rs 4.15 lakh and Rs 48,000, respectively.

This strategic price cut serves a dual purpose. Firstly, it strengthens MG’s positioning in the competitive electric vehicle market, which is rapidly expanding in India. Secondly, it helps balance the overall perception around pricing, especially as ICE model prices face upward revisions.

A Balancing Act Between Market Competitiveness And Sustainability

The simultaneous move of reducing EV prices while increasing costs elsewhere reflects MG’s nuanced approach to market dynamics. The Indian EV space is seeing greater interest from consumers, particularly in urban regions, due to fuel cost concerns and environmental awareness. Making EVs more accessible, while absorbing rising input costs in ICE models through price hikes, shows a calculated attempt to maintain relevance across segments.

MG’s decision also aligns with the government's push for EV adoption, where offering more attractive pricing could support higher volumes and consumer shift. Meanwhile, rising costs related to raw materials, international freight, and manufacturing continue to put pressure on conventional vehicle pricing.

What Buyers Should Consider Before July

Prospective buyers interested in purchasing an MG vehicle—particularly ICE models—may want to finalise their bookings before the price revision takes effect in July. Those considering the ZS EV may benefit from the current price cuts, making it an opportune time to invest in an electric alternative. Dealerships are likely to experience a surge in footfall in the days leading up to July as consumers look to capitalise on the existing price tags.

In conclusion, the auto sector continues to navigate a complex terrain of inflationary pressures and shifting consumer preferences. MG Motor India’s dual approach—raising prices in some areas while cutting them in others—may set the tone for how manufacturers tackle economic headwinds while keeping the Indian market engaged.