Mahindra & Mahindra on Tuesday said it will increase the price of its range of passenger and commercial vehicles, on all models starting January 1, 2021.
“This has been made necessary due to rising raw material prices and various other input costs,” the carmaker said in a regulatory statement.
Details of the price increase between the different models will be communicated in due course, the company further said.
Mahindra and Mahindra Ltd earlier this month reported a 4% increase in total vehicle sales to 42,731 units in November, amid demand for commercial vehicles and light commercial vehicles. The company sold 41,235 units in the period a year ago.
The company continued to experience subdued demand for three-wheelers and commercial vehicles over 3.5 tonnes gross weight (GVW) in the domestic market.
Driven by demand for its popular UVs such as the Scorpio, Bolero, XUV500 and the new Thar, M & M’s passenger vehicle wholesale sales stood at 18,212 units, up 24% in November.
It sold 17,971 units in the UV segment, an increase of 27% year-on-year. However, in the passenger car category, it only sold 241 units, down 49% year-on-year.
The company’s wholesale sales in the 2-3.5 ton light commercial vehicle category were 14,799 units, up 9% year-on-year. In the smaller light commercial vehicle segment (under 2 tonnes), it sold 3,755 units compared to 3,149 units sold a year ago.
In the three-wheeler category, including electric vehicles, M&M wholesale sales were 3,854 units, down 42% year-on-year in November.
Total M&M vehicle exports in November were 1,636 units, down 38% year-on-year.
Shares of M&M were up 0.80% or 5.70 on Tuesday ₹717.40 on BSE at the close of the market.
Earlier this month, the country’s largest carmaker, Maruti Suzuki India, also announced it will raise prices across its entire model range starting January 2021.
The automaker said the cost of the vehicles had a major impact due to various input costs and it is “necessary to pass on some of the impacts to customers.”
This price increase will vary for different models, the company said in a regulatory document.