In order to recover the losses due to the rise in prices of raw materials, Mahindra & Mahindra has announced a price hike of up to 2 percent on its entire range of products. ”Margins have been a concern as raw material prices were going up in the past. We hope that it will come down in the future. We raised the prices last by 1.5-2 per cent,” said Mahindra & Mahindra (M&M) Senior Vice-President (Marketing – Automotive Sector) Vivek Nayer. He also added that the company undertook price revision of various products across all categories.
Earlier in January this year, the company had hiked prices by 1.5 percent followed by another hike of 1.5 – 2 percent in the month of April; making this the third price rise of the year by the firm. ”July and August have been very good. Now we are hoping better sales in September and October on account of the festive season,” said Mr Nayer when asked about sales. “The company is observing the movement of interest rates on auto loans ‘cautiously’ as it can have an adverse impact on customer demand,” he added.
Mahindra & Mahindra sells utility vehicles like ‘Scorpio’ and ‘Bolero’ along with three-wheeler commercial vehicles, the ‘Verito’ sedan and a range of three wheeler commercial vehicles. According to various reports, M&M registered a rise of 31.09 per cent with 35,756 units in August 2011 as compared to the same month a year ago, in the domestic market. A rise of 41.90 per cent with 37,323 units was observed in the month of July as compared to the same month in 2010.Nayer said, “All our products are doing very well. Our core products as well as new additions have done well. Products like ‘Scorpio’ and ‘Verito’ are helping the company to register robust growth in the recent past.”