With the value of India Rupee hitting rock bottom, carmakers are being compelled to increase prices of their vehicles. India's leading SUV maker, Mahindra is also reportedly planning to hike prices of its vehicles including the top selling XUV 500 SUV and Xylo multi-purpose vehicle by 10 to 15 per cent.
It was recently only Mahindra announced that it will reopen bookings for the cheetah-inspired XUV 500 from June 8 this month. The SUV's 9 months production capacity was sold out due to overwhelming response from customers in just 2 rounds of booking and Mahindra had to ramp up production capacity of the XUV 500 up to 4000 vehicles per month to cater to the growing demand of the SUV.
Meanwhile, the carmaker is planning to hike the price of its passenger vehicles as well as commercial vehicles. The official announcement from Mahindra on the price hike is expected to come out soon. Though the company's manufacturing is mostly localised, it imports some critical raw materials from foreign markets thus forcing the company to increase the price of its vehicles.
The price hike is also expected to fall on other models such as the Bolero SUV and Verito sedan. Other carmakers are also expected to follow the course with Japanese carmaker Toyota already hiking the price of its cars.
Meanwhile, all major companies' sales have been hit by hike in petrol prices. Many carmakers are offering huge discounts to attract customers towards their petrol cars.