Mahindra to increase vehicle prices in January 

Prices will be raised by over 1% across various models to offset rising input costs 

 

In November, M&M reported 18% increase in total sales at 48,143 units. Its domestic sales stood at 46,755 units, up 23% from the same month last year. 

 

                      New Delhi: Mahindra & Mahindra Ltd (M&M) on Tuesday said it would increase prices of its vehicles by over 1% across various models in January to offset rising input costs.

“We are also contemplating a price hike across various models. The quantum is yet to be decided but it will be 1% and above. This will take place in the first half of January,” Mahindra & Mahindra chief executive (automotive division) Pravin Shah said.

He said the price hike was required in order to offset the impact of rising input costs, mainly from the commodity prices, and also adverse currency movements.

The price hike will impact both commercials and personal vehicles segment, he added.

M&M’s personal vehicle portfolio has a range of models starting from Bolero to Rexton, which are available at prices starting at Rs.5.65 lakh and goes up to Rs.19.75 lakh (ex-showroom Delhi).

Other car makers such as Maruti Suzuki India Ltd, Toyota Kirloskar Motor and General Motor India have already announced plans to hike prices from January.

Similarly, Honda Cars India, Volkswagen and Nissan are also considering such a move. In the luxury segment, Audi and Mercedes Benz have also said they are increasing prices from January.

In November, M&M reported 18% increase in total sales at 48,143 units. Its domestic sales stood at 46,755 units, up 23% from the same month last year.

Driven by newly launched Quanto and Rexton, the passenger vehicles segment registered an increase of 38% at 24,604 units.

When asked if the company is offering discounts in December to push sales, Shah said: “In our models such as Rexton, Quanto and XUV500 there is no scope for discounts as these are still having waiting period.”

On other models such as Bolero, Xylo and Scorpio there will be market schemes in order to woo customers who generally stay away from buying new vehicles due to model-year change in December, Shah said.

For instance, the company is offering discount of up to Rs.30,000 on Bolero.

 

Lalit Sharma

PGDM 2nd SEM