Mahindra SUVs are expected to become more expensive in the coming weeks, as Mahindra & Mahindra evaluates the need for a price increase amid rising input costs and currency pressures.
The company has claimed the impact of higher commodity prices and the weakening of the rupee against the US dollar before finalising the decision. The Indian automaker is expected to arrive at a call over the next few weeks.
Mahindra New Price Strategy
The Executive Director and CEO (Auto & Farm Sectors) Rajesh Jejurikar told to PTI that “We are studying the impact of commodity inflation and forex issues, and based on that, we will take a call whether to take a price hike or avoid it.”
He further said that the company is closely tracking commodity inflation, particularly in precious metals. He also signals the impact of the strengthening dollar against the rupee.
He told to media that “So, we will wait and watch to see what happens on the commodity front over the next few weeks.”
What other market players are doing
Mahindra’s note comes at a point when several automakers have already announced price hikes. Auto makers such as Hyundai, BYD, and JSW MG Motor have confirmed price hike effective since January.
Market leader Maruti Suzuki India has also indicated that it will soon decide whether to raise prices of its small cars, which had seen price cuts last year beyond the GST benefit of 8.5 per cent.
Luxury carmakers are also analysing their pricing strategies. Mercedes-Benz India has said that they are considering quarterly price hikes in the next calendar year to offset the impact of rupee depreciation against the euro. In the same way BMW India is also looking at increasing vehicle prices.
If Mahindra and Mahindra finialises to increase the price, it would add to the growing list of automakers passing on higher costs to consumers amid persistent global economic pressure.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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