Mahindra Announces Price Hike of Upto Rs 40,000 on PV and CV Range in India
Mahindra Scorpio. (Image source: Mahindra)
Automobile major Mahindra & Mahindra on Friday raised the prices of its range of personal and commercial vehicles by around 1.9 per cent resulting in an increase of Rs 4,500 - Rs 40,000, depending on the model and variant.
Accordingly, the new prices will become effective from the day.
The company said in case of 'All-New Thar', the current price increase will be effective for all bookings done between December 1, 2020 and January 7, 2021.
According to Veejay Nakra, CEO - Automotive Division, M&M: "The price increase was necessitated due to unprecedented increase in commodity prices and various other input costs over the past many months."
"We have made all efforts to reduce our costs and deferred price increase for a significant duration, but due to the quantum of input cost increase, consequently we are taking this price increase effective January 8, 2021."
Recently Fitch Ratings had mentioned that Indian automakers' plans to pass on higher commodity prices to customers will dim the prospects for a demand recovery after December 2020, when the boost in some categories from pent-up demand and festive spending fades, and the economic impact from the coronavirus pandemic reasserts itself.
Accordingly, the ratings agency said pent-up demand after the gradual easing in the government's lockdown measures helped India's monthly wholesale volume of passenger vehicles (PV) return to growth after July 2020.
The data from Society of Indian Automobile Manufacturers (SIAM) showed PV wholesale volumes rising by 13 per cent on a YoY basis in the quarter ended September 2020.
Besides, festive demand helped sustain the growth after September, but the pace slowed to 5 per cent YoY in November 2020 from 14 per cent in October 2020.