Utility vehicle specialist Mahindra & Mahindra said on July 30 that it will raise prices of its passenger vehicle range by up to Rs 30,000, or 2 percent, to offset the rise in the price of raw material.
New prices will come into effect from August. Rajan Wadhera, President - Automotive Sector, Mahindra & Mahindra said, “With the ongoing increase in commodity prices we plan to take a price hike of up to 2% in some models.”
The company that sells passenger vehicles such as Scorpio, XUV500, TUV300 and Bolero, didn't reveal the hike in prices across models.
M&M is the not the only one to have announced hike in prices. South Korean car maker Hyundai had announced a hike of up to 3 percent on the Grand i10 hatchback in mid-July. This was preceded by a 2 percent hike across its range (except Creta) in June.
Japanese giant Honda had also announced a hike of between Rs 10,000 to Rs 35,000 on its range citing increase in customs duty, freight and input costs. The hike will be effective from August.
India’s third largest car maker Tata Motors too announced a price hike to the tune of 2.2 percent from August to mitigate input cost hike.
Most automotive companies carried out a price hike at least once during the calendar year. For instance Tata Motors had increased prices by 3 percent in April.
Commodity costs have been on an upswing since the past few quarters and the outlook for them remains grim with expectations of a sustained increase through the rest of the quarters.
Maruti Suzuki has not hiked prices of its vehicles this time around.
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