Indian automobile maker Mahindra & Mahindra will increase its vehicle prices up to 3 per cent from April 1. The prices will be increased across its SUVs and commercial vehicles.
“This price increase is attributed to rising input cost and increased commodity prices, among other reasons. The extent of the price increase will vary across different SUVs and commercial vehicles,” the company stated in an exchange filing.
Earlier, Maruti Suzuki Limited, Tata Motors, Hyundai, and Renault had announced price increases on their passenger vehicles. Tata Motors will be implementing price hikes on its commercial vehicles as well.
“Automakers generally take a price increase at the start of the calendar/fiscal year to help offset factors such as increase in operational costs on account of inflationary pressures and commodity prices. The recent price hikes announced by various car makers are for the same reason. While the price hikes have the potential to moderate the demand sentiments to an extent, it must be noted that there are already healthy discounts on offer across a variety of models in the passenger vehicle industry, with the industry focused on bringing down inventory levels. Accordingly, the impact of these price hikes on demand is expected to be modest,” said Rohan Kanwar Gupta, Vice President & Sector Head, of Corporate Ratings, ICRA Limited.
