Mahindra announces price hike of up to 2 percent across product range

Mahindra & Mahindra Ltd has decided to increase its car prices by 2 percent from January 1, 2014. The price hike will be effective across its entire range. The company says that this price hike is primarily due to rising materials, input and higher freight costs. 

Commenting on the price hike, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, “We have been holding back prices for a while but now it has become necessary to raise them to partly compensate the increase in materials, input and freight costs. As always, Mahindra remains committed to its customers.”

The Indian auto industry has seen a weak sales year once again with manufacturers resorting to heavy discounting to push vehicles off the shelf. A price hike towards the end of the year keeps inflation in check but for many manufacturers, is also a correction to the slight devaluation its products receive in tough market conditions. Most manufacturers have either announced a price revision or are in the process to do so in the coming weeks.