India's leader in sales and manufacture of utility vehicles Mahindra has recently launched its new scooter and SUV. The Indian manufacturer launched its next generation Scorpio and a ground-up scooter christened Gusto. Both vehicles have received overwhelming response.
Mahindra & Mahindra have just announced that they will be increasing prices of their vehicles. The reason for this hike in prices is due to high input costs of components. They have opted to increase prices by roughly one to two percent.
Pravin Shah, Chief Executive, Automotive Division and International Operations (AFS), Mahindra & Mahindra Ltd. said, "We have been holding back on price hikes for a while but now it has been necessitated to partly offset the impact of rising input costs."
Mahindra has decided it will increase the price of commercial and passenger vehicles in India. This price hike will range from INR 2,300 to INR 11,500 depending on the model and variant opted for by customers.
The Indian manufacturer did not witness great sales even during festival season. Mahindra domestic sales have dropped significantly, however, on a yearly basis the manufacturer seems to be on track for their annual goal.
We can expect several manufacturers to increase costs of their vehicles in the near future. The reduction in vehicle taxes are going to be set as previously and it is most likely to not be extended. Component costs and several other factors have given rise to this price hike.