M&M to increase SUV, commercial vehicle prices up to 3% from April
The Indian automotive industry is gearing up for another price hike, as Mahindra & Mahindra (M&M) has announced a price increase of up to 3% for its SUV and commercial vehicle range from April. This decision comes in response to the rising costs due to inflation and increased commodity prices. This development is not an isolated incident, as Hyundai Motor has also decided to raise prices next month due to high operational costs.
According to a statement released by M&M, the price hike will be effective from April, and the exact quantum of the increase will vary depending on the model and variant. The company has cited rising costs as the primary reason for the price increase, which is a trend seen across various sectors in recent times. Inflation, which has been rising steadily over the past few months, has put pressure on businesses to increase their prices to maintain profit margins.
The impact of inflation on the automotive industry is significant, as it affects the cost of production, raw materials, and other operational expenses. The rising cost of raw materials, such as steel and plastic, has been a particular challenge for the industry. In addition, the increasing cost of employee salaries and benefits has also added to the burden.
The price increase announced by M&M is not the first of its kind in the industry. In recent months, several automotive companies have raised prices due to similar reasons. For instance, Maruti Suzuki, the country’s largest carmaker, had increased prices by up to 2.5% in January to offset rising costs. Similarly, Tata Motors, another leading automaker, had raised prices by up to 3% in February.
The impact of the price hike on customers is likely to be significant, particularly for those who are buying vehicles for the first time or upgrading from an older model. The increase in prices will not only add to the upfront cost of the vehicle but also affect the overall cost of ownership, including fuel, maintenance, and insurance.
However, it’s worth noting that the price hike may not have a significant impact on the demand for SUVs and commercial vehicles, which are in high demand in the Indian market. The SUV segment, in particular, has been a bright spot for the industry, with sales growing steadily over the past few years. Commercial vehicles, such as trucks and buses, are also in high demand, driven by the growth of the logistics and transportation sectors.
In conclusion, the price increase announced by M&M is a reflection of the challenging operating environment faced by the automotive industry. While the price hike may add to the cost of ownership for customers, it is likely to have a limited impact on demand, given the strong demand for SUVs and commercial vehicles. As the industry continues to navigate the challenges posed by inflation and rising costs, it will be interesting to see how other players respond to the price hike and whether they follow suit.
