M&M to increase SUV, commercial vehicle prices up to 3% from April
As the global economy continues to grapple with the challenges of inflation and rising commodity prices, Indian automakers are also feeling the pinch. The latest victim of these rising costs is Mahindra & Mahindra, one of the leading SUV and commercial vehicle manufacturers in the country. In a move that is likely to impact its customers, the company has announced a price increase of up to 3% for its SUV and commercial vehicle range from April.
The decision to hike prices is seen as a response to the rising costs due to inflation and increased commodity prices. The company has been facing significant increases in the cost of raw materials, including steel and aluminum, which has put pressure on its margins. In an effort to maintain its profitability, Mahindra & Mahindra has decided to pass on some of these costs to its customers.
The price hike is expected to be implemented from April, and it will vary depending on the model and variant of the vehicle. While the exact impact on the prices of individual models is not yet clear, it is likely to be in the range of 1-3%. This means that customers can expect to pay an additional Rs. 10,000 to Rs. 30,000 more for their new vehicle, depending on the model and variant they choose.
It is worth noting that Mahindra & Mahindra is not the only automaker to announce a price hike in recent times. Hyundai Motor India, another leading automaker in the country, has also decided to raise prices next month due to high operational costs. The company has cited rising costs of raw materials, including steel and copper, as the reason for the price hike.
The decision to hike prices by these automakers is likely to have a significant impact on the Indian automotive market. In recent times, the market has been experiencing a slowdown due to a variety of factors, including economic uncertainty and increased competition. The price hike is likely to add to these challenges, and it may lead to a further slowdown in demand for new vehicles.
However, it is also worth noting that the price hike may not have a significant impact on the overall sales of Mahindra & Mahindra and Hyundai Motor India. Both companies have a wide range of products in their portfolios, and they are likely to be able to absorb the impact of the price hike through their pricing strategies. Additionally, the price hike may not have a significant impact on the overall demand for new vehicles, as many customers are willing to pay a premium for the quality and features offered by these companies.
In conclusion, the decision by Mahindra & Mahindra to increase the prices of its SUV and commercial vehicle range by up to 3% from April is a response to the rising costs due to inflation and increased commodity prices. While the price hike may have a significant impact on the Indian automotive market, it is also worth noting that the company has a wide range of products in its portfolio and is likely to be able to absorb the impact of the price hike through its pricing strategies.
