The product prices of Mahindra & Mahindra vehicles and tractors would witness a rise as the Indian SUV and farm equipment major is finding it difficult to operate at the current prices. Official spokesperson has said that the company has been holding back on the price hikes but is no longer in position to do so.
Mahindra & Mahindra has announced that it has increased prices of its passenger and commercial vehicles by an average of 1%. This increase would be in the range of Rs 2,300 to Rs 11,500 (ex-showroom) depending on the model and has been effective this month. Moreover, the company’s Farm Equipment Sector (FES), a part of the USD 16.5 billion Mahindra Group, will also witness a price hike. Along with the passenger and commercial vehicles, the company also announced that it has increased the prices of its tractors effective from November 2014. The increase is in the range of Rs 6,000 to Rs 10,000. The price hike has been necessitated owing to increase in commodity prices and conversion costs.
Commenting on the price hike Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), Mahindra & Mahindra Ltd. said, “We have been holding back on price hikes for a while but now it has been necessitated to partly offset the impact of rising input costs.”
Stay tuned to Motoroids for more updates from motoring industry.