Wednesday, April 03, 2013
By Pawan Rana
Mahindra car prices to go up by up to 2 percent soon
Inflation, input costs and overall slowdown in the industry is forcing car makers to give a hike to car prices. It is after having seen these factors affecting margins for months altogether, car makers such as Hyundai and Honda have already increased the price of their cars from April 1. Continuing the trend, Mahindra is also soon to increase the price of its cars by up to 2 percent, this will be the first hike by the car make in this financial year. Car industry experts believe that the trend of rise in prices of cars will continue if the present slowdown in sales also continues. Thus, the price rise will again affect car sales and this will become a vicious circle.
It is believed that almost all the Mahindra car prices will see a hike soon and thus Mahindra cars are expected to be dearer by Rs 5,000 to Rs 12,000 if there is 1 percent increase in prices. If there is 2 percent increase in price of Mahindra cars then the price rise will be between Rs 10,000 to Rs 20,000. As per sources information, it is quite possible that Mahindra will be giving a hike to only select models such as Mahindra Thar, Mahindra Verito and Mahindra XUV 500. Though there is no official word about it but the hike will be declared soon, may be in the coming 2-3 days.
Analysts believe that the hike as a result of higher duties on SUVs has already put car makers in a tizzy and the prevailing conditions will further dampen the situation. Though Mahindra is waiting for a clarification on the issue of higher tax on SUVs from the government and as soon as there is one, there will be a commensurate price rise soon. Meanwhile, the Mahindra e2O is getting slow response from car buyers.