Mahindra to hike prices by up to 3 percent
Saturday, December 16, 2017
Editor Garipoint
Mahindra cars to cost three percent more in the New Year

Mahindra and Mahindra have now declared that it plans to expand vehicle prices by three percent. The price hike will come into effect in January 2018 and will affect all vehicles from its portfolio.

The company cited higher input costs for the decision to increase prices. Commenting on the decision, Rajan Wadhera, President, Automotive Sector, Mahindra & Mahindra said, "We have been holding back on price hikes and absorbing the higher input costs for a while; but with the increase in commodity prices, we will have to take a price increase."

The variant-wise prices of Mahindra vehicles will go up in the New Year. It isn't Mahindra alone who has planned to hike car prices. Numerous different manufacturers like Skoda, Tata Motors, Isuzu, Ford, Maruti Suzuki, Honda and Toyota have officially declared their decision to increase prices from early next year.

Some manufacturers increase their cars prices toward the start of the New Year while others do it after opening new books in April. Mahindra sells a range of vehicles, including SUVs Scorpio and XUV500, in the country.

This usual increment in cars prices is a common practice in the Indian vehicle industry. It enables carmakers to make up for inflation. Further, expanding the prices around the New Year enables them to clear up the earlier year's inventory. Discounts and offers come in huge packages around this time, and the threat of a forthcoming price hike helps discounts and offers to appear larger than they are. Mahindra has still endeavored to cap this price hike to three percent and reduce the impact on consumers by absorbing most of the incremental costs.