Mahindra ups prices 2 percent, effective October 1

Mumbai, September 27, 2013: Following GM India, Maruti, Toyota and Hyundai, Mahindra & Mahindra has also hiked prices of its passenger and as well as commercial vehicles by two percent. This increase would be in the range of Rs 6,000 to Rs 20,000 depending on the model and becomes effective October 1, 2013. The increase is attributed to higher input costs, devaluation of the rupee and increase in some raw material costs.

Pravin Shah, chief executive, Automotive Division, M&M, said, “We have been holding back prices for a while but now it has become necessary to raise them due to increasing input costs, devaluation of the rupee and increase in some raw material costs. As always, Mahindra remains committed to its customers”.

It remains to be seen if the price increases will dampen consumer sentiments in the upcoming festive season. Thanks to good monsoons, OEMs are hoping to get more footfalls into showrooms even as the slowdown continues. Sales of passenger cars rose in August thanks to a lower base in the year-earlier period following a drop in Maruti’s sales thanks to a strike.

M&M sold 15,130 units in the month (exclusive of CVs) comprising 7,030 units of the Bolero and 3,356 units of the Scorpio. Incidentally, Scorpio sales outnumbered those of the Renault Duster which appears to be affected by the Ford EcoSport. The company sold close to 58,000 units of small CVs in the April-August 2013 period.

Like all players in the tractors segment, M&M continues to be on a roll. It sold 135,43 units in the month, up 9 percent. Rajesh Jejurikar, chief executive, Tractor and Farm Mechanisation, said, “Our domestic growth of 9 percent and consistent performance over the last five months is heartening. We believe the kharif sowing having crossed the 1,000 lakh hectare mark, normal monsoons and prospects of the approaching festive season are indicators of stronger growth in the agricultural sector in the coming months.”