Latest Car News in India

Tuesday, September 06, 2011

By Pranjal Gera

Mahindra Car Prices hike by 2 percent

Bad news for people who were planning to buy Mahindra Scorpio, or Mahindra Xylo, or Mahindra Bolero, or even recently launched Mahindra Verito. Mahindra & Mahindra has made the official announcement of its third price hike of the year. The prices of all its products will go up by about 2 percent.

Mahindra & Mahindra's Senior Vice-President for Marketing and Automotive, Mr. Vivek Nayer said that the reason for this price hike is the rising prices of the raw material. He said that the margin was becoming narrower and they had to make a decision. However, he believes that the prices of the raw material will go down in the near future.

Previously, Mahindra & Mahindra increased the prices of its cars by 1.5 percent in the month of January. After that, April saw another price hike of 1.5-2 percent.

This could harm the image of the company and affect its sales. However, MR. Nayer is confident that won't happen. He said that they expect a growth in sales figures in the months of September and October, as the festival season starts soon.

The automobile giant has seen a significant growth in the months of July and August. Their sales have increased by 31.09 percent.

Mr. Nayer added that Scorpio and Verito are the mainline products of the company, showing great sales figures. However, he refused to give out the details of the new Verito (With lesser price) model launch. He said that they are working on it, and he will come up with the details when everything is finalised.

Verito is the new name given to their sedan 'Logan'. It was changed when Mahindra & Mahindra bought off Renault's stake of 49 percent, earlier this year.

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