M&M to increase SUV, commercial vehicle prices up to 3% from April
The Indian automotive industry is witnessing a wave of price hikes, with Mahindra & Mahindra (M&M) being the latest to join the bandwagon. The company has announced that it will increase the prices of its SUV and commercial vehicle range by up to 3% from April. This move comes in response to the rising costs due to inflation and increased commodity prices.
The price increase will be effective from April 1, 2023, and will vary depending on the model and variant. While the exact impact on the prices of individual models is not yet known, it is expected to have a significant effect on the overall profitability of the company.
M&M’s decision to increase prices comes on the heels of Hyundai Motor’s announcement to raise prices next month due to high operational costs. This development is likely to have a ripple effect across the industry, with other manufacturers also considering similar price hikes.
The rise in prices can be attributed to a combination of factors, including the ongoing inflationary trends and the increased costs of raw materials and commodities. The Indian government’s decision to raise the goods and services tax (GST) on automobiles earlier this year has also contributed to the price increase.
M&M’s decision to hike prices is a strategic move to maintain its profitability in the face of rising costs. The company has been facing intense competition in the Indian market, with multiple players vying for market share. By increasing prices, M&M is aiming to maintain its revenue streams and ensure that it remains competitive in the market.
The SUV and commercial vehicle segments are critical to M&M’s business, and the company has been investing heavily in these areas. The company’s compact SUV, the XUV300, has been a major success, and the company is looking to build on this momentum by introducing new models and variants.
M&M’s decision to hike prices is likely to have a mixed impact on customers. On the one hand, the price increase may lead to a temporary decrease in demand, as customers may delay their purchases to take advantage of lower prices. On the other hand, the price hike may also lead to a surge in demand for M&M’s products, as customers may be willing to pay a premium for the company’s high-quality vehicles.
In conclusion, M&M’s decision to increase the prices of its SUV and commercial vehicle range by up to 3% from April is a strategic move to maintain its profitability in the face of rising costs. The company’s decision to hike prices is likely to have a mixed impact on customers, but it is expected to have a positive impact on the company’s bottom line.
