Tuesday, March 25, 2014
By John Andrew
Car makers to hike prices from next month
Mahindra & Mahindra, Honda Cars India and Tata Motors are looking to increase prices of their models from next month, mainly to offset higher input and operational costs. "We are actively contemplating increasing the prices of our vehicles in April due to increase in input and operational costs," Mahindra & Mahindra Chief Executive (Automotive Division) Pravin Shah told PTI. The company hasn't decided by how much prices will be raised. "We have not yet taken a final decision on the quantum and timing but this a matter we are seriously considering right now. It will happen for sure in April," Shah said.
Sources in Honda Cars India said the company is considering a hike in prices next month. "The discussions are going on, there is a possibility," the source said. Tata Motors said it may increase prices of passenger vehicles by 1 to 2 per cent. Honda cars are priced between Rs 3.99 and Rs 24.36 lakh, while Mahindra passenger vehicles manufactured in the country retail between Rs 5.43 lakh and Rs 14.48 lakh (all prices ex-showroom Delhi).
Last month, Mahindra had reduced prices of its passenger vehicles by between Rs 13,000 and Rs 49,000, after the reduction of excise duty. Honda Cars India had also cut prices by as much as Rs 44,741.
Source: Economic Times