Mahindra & Mahindra has hiked the prices of all its vehicles comprising the Logan, Bolero, Scorpio and light commercial vehicles, Gio, Genio and Maxximo from Rs. 7,000 to Rs. 15,000 varying based on the models.
Pawan Goenka, Mahindra and Mahindra President (Automotive and Farm Sectors), is quoted by the Economic Times as saying, “We have hiked prices last week by 1.5% to 2% on all our vehicles due to higher commodity costs.”
This is the second time Mahindra has hiked prices of its vehicles this year. In January 2011, the company had raised the prices by 1.5%.
Three days ago, rising inputs costs led Maruti Suzuki to announce an increase in price of all models by 0.2% to 2.4%, which translates to Rs. 1000 – Rs. 9,000 effective April 5.
Toyota, too, said that it will also raise prices of its key models except the Etios, by 1% to 1.5% , which translates to a hike of up to Rs. 20,000 across models. Related: Toyota hikes prices of key models
Similarly, Tata Motors has also announced a price hike this month, which goes up to Rs. 36,000 for its most expensive models, though, the Tata Nano been spared the hike. Related: Tata Motors price hikes in April
GM India and Hyundai, too, are expected to announce price hikes any time soon.
Auto makers have been complaining about the increasing cost of steel, rubber etc, as a reason for the rising prices of their car models. Of course, the increased duties, such as the recent revision in CKD levies by the government, also mounts pressure on car makers to hike prices.
Indian auto industry registered a 30% sales growth in the 2010-11 fiscal year to 1.98 million units. The sales growth is expected to be in the range of 16 – 18% in the current fiscal.
India is the second largest growing auto market in the world, the first being China.