M&M to increase SUV, commercial vehicle prices up to 3% from April
The ongoing inflation and rising commodity prices have taken a toll on the Indian automobile industry, with the latest being Mahindra & Mahindra’s decision to increase prices of its SUV and commercial vehicle range by up to 3% from April. This move comes as a consequence of the increasing costs faced by the company, which is now being passed on to the customers.
As per a statement released by the company, the price hike is a response to the “rising costs due to inflation and increased commodity prices”. This development comes as a surprise to many, especially given the recent disruptions in the global supply chain, which have already impacted the sales of automobiles in the country.
The price hike will be effective from April, and it remains to be seen how it will affect the sales of Mahindra’s vehicles in the coming months. The company’s decision to increase prices is likely to have a ripple effect across the industry, with other manufacturers also considering similar moves in the near future.
Mahindra & Mahindra is not the only company to take this step, as Hyundai Motor has also announced plans to raise prices of its vehicles in India next month. The South Korean automaker cited “high operational costs” as the reason for the price hike, which is expected to be in the range of 1-3%.
The decision to increase prices is a strategic move by Mahindra & Mahindra to maintain its profit margins in the face of rising costs. The company has been facing intense competition in the Indian automobile market, with many manufacturers offering a wide range of vehicles at competitive prices.
However, the price hike is likely to have a negative impact on sales, especially in the commercial vehicle segment. Commercial vehicle sales have been declining in recent months, and the price hike may further exacerbate the situation.
The Indian automobile industry is facing a number of challenges, including rising costs, declining sales, and increased competition. The government has been trying to address these issues by introducing policies to boost demand and improve the overall business environment.
In recent months, the government has introduced a number of measures to boost the automobile industry, including a reduction in Goods and Services Tax (GST) on electric vehicles and a increase in the limit for availing of input tax credit.
However, despite these efforts, the industry continues to face challenges. The shortage of semiconductors has affected the production of vehicles, while the rising costs of raw materials and labor have increased the cost of production.
The impact of the price hike on Mahindra & Mahindra’s sales will be closely watched by the industry and investors. The company has been facing intense competition in the Indian automobile market, and the price hike may further exacerbate the situation.
In conclusion, Mahindra & Mahindra’s decision to increase prices of its SUV and commercial vehicle range by up to 3% from April is a strategic move to maintain its profit margins in the face of rising costs. However, the price hike is likely to have a negative impact on sales, especially in the commercial vehicle segment.
