Mahindra to increase prices of vehicles by January 2017

From January 2017, Mahindra will increase its passenger vehicle prices by upto Rs 26,500, while the small commercial vehicles prices will be increased by Rs 6,000. The lowest price hike on its passenger vehicle range will be of Rs 3,000. In addition to this, the prices of the small commercial vehicles ( Bolero Pick up,Jeeto and Supero etc) will also see a price hike up to Rs 6,000. The company has attributed the hike in prices to the rising cost of production. Due to this, various car manufacturers such as Toyota, Tata Motors, Nissan, Hyundai Motors and Mercedes Benz have decided to increase its prices from January 2017.

In a statement on price hike, Pravin Shah, Chief Executive Officer Auto Division, Mahindra and Mahindra, said, "We plan to increase prices of our passenger and commercial vehicles in the range of 0.5 to 1.1 per cent from next month. Prices of passenger vehicles would go up in the range of Rs 3,000 to Rs 26,500 depending upon the model."

This price-hike, when compared to some other carmakers is significantly lesser as some companies have announced to increase prices by upto 3 %. It must also be noted that some of these companies have to import some critical components and hence are exposed to the fluctuations of foreign exchange as well.

After the demonetisation effect last month, the manufacturer witnessed the low sales in rural areas. According to the last month sales, the home grown manufacturer sold 32,499 units as compared 41,950 units in November 2015. In the passenger vehicle segment, which includes Utility vehicle, vans and cars, the company sold 13,217 units in November 2016 against 19,662 units in last year same month. The exports segment registered a growth of 22 percent, the manufacturer sold 2685 units in last month as compared to 2207 units in same month last year.

Mahindra India