Mahindra and Mahindra said on Tuesday that they will increase the price of its range of commercial and passenger vehicles, on all models starting with January 1, 2021.
“This was necessary due to rising commodity prices and various other entry costs,” the carmaker said in a regulatory document.
Details about the price increase for different models will be communicated in due time, the company added.
Mahindra and Mahindra Ltd reported a 4% increase in total vehicle sales to 42,731 units in November earlier this month amid demand for commercial vehicles and light commercial vehicles. The company sold 41,235 units a year ago.
The company continued to see low demand for three-wheelers and commercial vehicles over 3.5 tonnes gross weight (GVW) in the domestic market.
Driven by demand for its popular UVs, such as Scorpio, Bolero, XUV500 and the newly launched Thar, the wholesale of M&M passenger cars amounted to 18,212 units, up 24% in November.
It sold 17,971 units in the UV segment, up 27% from the previous year. However, in the car category, it sold only 241 units, down 49% annually.
The company’s wholesale sales in the LCV category of 2-3.5 tons were at 14,799 units, increasing by 9% compared to the previous year. On the smaller segment of heavy-duty vehicles (less than 2 tons), it sold 3,755 units compared to 3,149 units sold a year ago.
In the three-wheeled category, including electric vehicles, M&M’s wholesale sales amounted to 3,854 units, down 42% from the previous year in November.
Total exports of M&M vehicles in November stood at 1,636 units, down 38% from the previous year.
M&M shares rose 0.80% or 5.70 on Tuesday ₹717.40 to BVB at the closing time of the market.
Earlier this month, the country’s largest carmaker Maruti Suzuki India had also announced that it would increase prices in its model range starting in January 2021.
The carmaker said the cost of the vehicles was severely affected due to various entry costs and it is “necessary to pass on some impacts to customers”.
This price increase will vary depending on different models, the company said in a regulatory document.