Mahindra & Mahindra announced on Tuesday that the company will increase its passenger and commercial vehicle prices for all models from January 1, 2021.
“This was necessary because of the rise in raw material prices and various other input costs,” said the automaker in a registration application.
Details of the price increase for various models will be communicated in due course, the company continues.
Mahindra and Mahindra Ltd earlier this month reported a 4% increase in total vehicle sales to 42,731 units in November driven by demand for commercial vehicles and light trucks. The company sold 41,235 units in the same period last year.
The company continued to experience subdued demand for tricycles and commercial vehicles with gross vehicle weight (GVW) greater than 3.5 tons in the domestic market.
Due to the demand for popular UV rays such as Scorpio, Bolero, XUV500 and the newly launched Thar, M & M’s car wholesale sales were 18,212 units, up 24% in November.
17,971 units were sold in the UV segment, an increase of 27% compared to the previous year. In the passenger car category, however, only 241 units were sold, a decrease of 49% compared to the previous year.
The company’s wholesaling in the 2-3.5-tonne LCV category was 14,799 units, 9% up on the previous year. In the smaller LCV segment (less than 2 tons), 3,755 units were sold compared to 3,149 units in the previous year.
In the tricycles category, including electric vehicles, M & M’s wholesale sales were 3,854 units in November, down 42% year over year.
M & M’s total vehicle exports were 1,636 units in November, a 38% decrease from the previous year.
M & M’s shares rose 0.80%, or 5.70, on Tuesday £717.40 on BSE at the end of the market.
Earlier this month, the country’s largest carmaker, Maruti Suzuki India, announced that it would increase prices for its model range from January 2021.
The automaker said the cost of vehicles would be heavily impacted due to various input costs and it was “necessary to pass some of the effects on to customers.”
This price increase should vary for different models, the company announced in a registration application.