Mahindra to Increase Prices of its Cars by 1-2 %

Homegrown Auto-major, Mahindra & Mahindra has announced that they will increase the prices of some of its vehicles by 1-2 per cent soon to counterbalance the increasing costs and inflation.

Speaking to the reporters at the CII annual conference, Pawan Goenka, Mahindra & Mahindra president (Automotive and Farm Equipment Sectors) said that “We will be soon announcing a price hike of 1 to 2 per cent in order to offset increasing input costs and inflation".

However, he did not disclosed the models name which would be getting a price hike. While talking about the SUV tax imposed during budget session, he said that they are waiting for a proper clarification from the Finance Minister (P Chidambaram) after the issue was taken up by the Society of Indian Automobile Industry (SIAM) as well as Minister of Heavy industries and Public Enterprises.

The company is still concerned about the new taxes imposed on SUVs (announced during budget), as Mahindra's all SUV and multi purpose vehicles have been affected by the hike in excise duty from 27 per cent to 30 per cent.

He also answered the question when asked about the future and the response to the company's electric car 'e2o' – the initial phase of the bookings have been a bit disappointing, although, the car has been appreciated by the media and consumers. Additionally, the subsidy related pricing of the e2o has been a concern with the buyers.

Source : ET