Mahindra & Mahindra on Tuesday said it will increase the price of its range of passenger and commercial vehicles, across models starting January 1, 2021.
“This was necessary due to the rise in commodity prices and various other entry costs,” the automaker said in a regulatory filing.
Details of the price increase between various models will be communicated in a timely manner, the company further said.
Mahindra and Mahindra Ltd earlier this month reported a 4% growth in its total vehicle sales to 42,731 units in November amid demand from utility vehicles and light commercial vehicles. The company sold 41,235 units in the year before.
The company continued to see low demand for three-wheeled and commercial vehicles larger than a 3.5-ton gross vehicle (GVW) in the domestic market.
Encouraged by the demand for its popular UVs like Scorpio, Bolero, XUV500 and the newly launched Thar, M&M’s wholesale vehicles were 18,212 units, up 24% in November.
It sold 17,971 copies in the UV segment, up more than 27%. However, in the category of passenger cars, it sold only 241 units, less than 49%.
The wholesale companies in the LCV category of 2-3.5 tons were at 14,799 units, more than 9% Yoj. In the smaller LCV segment (under 2-ton), it sold 3,755 units compared to 3,149 units sold a year ago.
In the three-wheel drive category, including electric vehicles, M&M’s wholesale sales were 3,854 units, down 42% in November.
M&M’s total vehicle exports in November stood at 1,636 units, down 38% on average.
Shares of M&M on Tuesday rose 0.80% or 5.70 to ₹717.40 at ESB at the closing time of the market.
Earlier this month, the country’s largest carmaker Maruti Suzuki India also announced that it would increase prices through its January 2021 model.
The automaker said the cost of vehicles has been significantly affected due to various entry costs and “some of the effects need to be passed on to customers.”
This price increase varies across a variety of models, the company said in a regulatory filing.