M&M to increase SUV, commercial vehicle prices up to 3% from April
In a move that is likely to impact the automotive sector, Mahindra & Mahindra (M&M) has announced a price increase of up to 3% for its SUV and commercial vehicle range from April. The price hike is a response to the rising costs due to inflation and increased commodity prices.
The company has stated that the adjustment is necessary to maintain its profit margins and ensure the sustainability of its business operations. The price increase will be applicable to all SUV and commercial vehicles, including the popular models such as the XUV500, Scorpio, and Thar.
The decision to increase prices comes at a time when the automotive industry is already grappling with the impact of the COVID-19 pandemic and the subsequent lockdowns. The industry has been facing a decline in sales and production due to the shortage of semiconductors and other components.
However, M&M’s decision to increase prices is not an isolated incident. Hyundai Motor, another major player in the Indian automotive sector, has also announced plans to raise prices next month due to high operational costs. The company has stated that the price hike is necessary to offset the rising costs of raw materials and other inputs.
The price increase by M&M and Hyundai Motor is likely to have a significant impact on the automotive sector. The two companies are among the largest players in the Indian market, and their decision to increase prices will set a precedent for other manufacturers.
The price hike by M&M and Hyundai Motor is likely to have a ripple effect across the supply chain. The increased cost of raw materials and other inputs will put pressure on other manufacturers and suppliers to increase their prices as well.
The impact of the price hike will also be felt by consumers. The increase in prices will make vehicles more expensive, which may lead to a decline in sales. This could have a negative impact on the overall economy, as the automotive sector is a significant contributor to the country’s GDP.
However, it’s worth noting that the price hike by M&M and Hyundai Motor is not a surprise. The company had already warned investors of the possibility of a price increase due to rising costs.
In a statement, M&M said, “The company has been facing increasing costs of raw materials, commodities, and other inputs, which have been impacting its margins. To maintain its profitability and ensure the sustainability of its business operations, the company has decided to increase the prices of its SUV and commercial vehicle range.”
Hyundai Motor also cited rising operational costs as the reason for the price hike. “The company has been facing increasing operational costs, including the cost of raw materials and other inputs, which have been impacting its profitability,” the company said.
The price hike by M&M and Hyundai Motor is likely to have a significant impact on the automotive sector. The two companies are among the largest players in the Indian market, and their decision to increase prices will set a precedent for other manufacturers.
As the industry continues to grapple with the impact of the COVID-19 pandemic, the decision by M&M and Hyundai Motor to increase prices is likely to have far-reaching consequences. The price hike will not only impact consumers but also the overall economy.
It remains to be seen how the price hike will affect the automotive sector in the long run. However, one thing is certain – the industry will have to adapt to the new reality and find ways to mitigate the impact of rising costs.
