Mahindra raises vehicle prices by upto 2 percent
The entire product range of Mahindra and Mahindra has experienced a price hike as announced by the company on Monday. High input costs like costlier raw materials have been a matter of concern for the company in the past and has led to this decision. This is the third price hike in 2011, the first being a hike of 1.5% in Jan and the second being that of 1.5-2% undertaken in April.
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Vivek Nayer, Senior Vice-President (Marketing - Automotive Sector) of Mahindra & Mahindra informed that prices have been raised by up to 2% last month. Keeping margins in concern the company undertook price revision of products across all categories. However Nayer is aware of movement of interest rates on auto loans which can have an adverse impact on customer demand and is cautious about it. He hopes to see a downfall in the rising raw material prices in future. The company has reported a good sale in July and August. Now M&M is hoping a better sale in September and October on account of the festive season. In the domestic market, M&M recorded a rise of 31.09% by selling 35,756 units in August compared to the last year’s corresponding period. In July, it had witnessed a jump of 41.90% by selling 37,323 units over the same period in 2010.
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Mahindra & Mahindra is known for its SUVs in India. The company is even thinking of starting business in South Africa as well. Their all terrain vehicles Mahindra Scorpio and Mahindra Bolero are quite popular as big family as well as taxi cars. The company sells Scorpio and Bolero along with three-wheeler commercial vehicles. Mahindra's sedan ‘Verito’ is also performing well and like Scorpio is helping M&M to register a robust growth. Since the car is too long, it attracts more taxes on highways and so the company is rethinking about a new model which is under 4 metre in length. However the company denies to talk about the probable launch date of its new SUV ‘XUV 500’.
