Mahindra & Mahindra, the country's leading SUV maker, said on Tuesday that the company will hike its vehicle prices by up to Rs.11,500 (ex-showroom), in a bid to tackle the rising input costs.
"We have been holding back on the price hikes for a while but now it has been necessitated to partly offset the impact of rising input costs," PTI quoted Mahindra & Mahindra Chief Executive ,Automotive Division and International Operations, Pravin Shah.
The quantum of the price hike will vary depending upon the models and will be in the range of Rs 2,300 to Rs 11,500 (ex-showroom).
Mahindra's current vehicle line up in India includes Quanto, XUV500, Scorpio, Bolero, Thar, Xylo, Verito, Reva, e2o, and SsangYong Rexton W in the passenger segment. The latest hike is also applicable for the commercial vehicles of Mahindra and the new prices come into effect immediately.
"The increase is in the range of Rs 6000 to Rs 10,000 depending upon the model. The price hike has been necessitated owing to increase in commodity prices and conversion costs," the company said.
Other car makers like Maruti Suzuki, Hyundai and Honda are also contemplating a price hike for their vehicles in India and the announcement is expected to come in the coming days. Two wheeler makers are also gearing up for a similar move and companies like Hero Moto-Corp and Honda Motorcycle & Scooter India have already increased their prices.
"We are feeling the pressure now, as there have been no effective price changes for the past several months, while discounts peaked. We have also launched four new cars this year with huge investments that need to be recovered," said Rakesh Srivastava, senior vice-president for marketing and sales at Hyundai Motor India, recently.