Thursday, December 15, 2011
By Pranjal Gera
Mahindra joins the January price rise wagon, announces an up of 3 per cent
The declining Indian rupee and rising cost of raw materials have left no automaker untouched be it the global carmakers in the country or the home grown utility major Mahindra & Mahindra that has announced an increase in the price of its vehicles. As per the company there will be a hike of 3 percent that will be confronted by all its vehicles in the lineup and will be effective from January 1st onwards.
A representative of Mahindra and Mahindra said that the company will increase the prices of its automobiles in India by three percent and the hike percentage may vary from model to model. The price elevation was a result of rising costs of inputs that was observed by the company since last couple of months.
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Apart from the higher prices of raw material, the declining Indian rupee can also be blamed for this augment in vehicle costs. Since the month of August 2011 the India rupee has plunged by a sharp 23 percent against the US dollar.
Till now, Mahindra and Mahindra has not announced the specific price increase of its models, but its newly launched Sports Utility Vehicle (SUV) Mahindra XUV 500 is expected to attract a hike of around INR 30,000 to INR 40,000 for its base model. The other Mahindra vehicles to face a similar hike include Mahindra Scorpio, New Mahindra Bolero, Mahindra Thar, Multi Utility Vehicle (MUV) Mahindra Xylo and sedan Mahindra Verito.
It is to be noted that many foreign automobile manufacturers in India such as US based Ford Motors and General Motors, Japanese carmakers Toyota Motors, Honda Motors and Nissan Motors along with Korean automaker Hyundai Motors and France based Renault Motors have already announced the price increase that will come in to effect from January 2012. While the dominant market leader Maruti Suzuki is still pondering over the price revision of its vehicles.