Mahindra to raise car prices by Jan 2011

Mahindra & Mahindra, the Indian Automobile manufacturer has also joined hands with other companies to hike the prices of its model in coming year. The heat of rise in raw material in India has forced a dozen of automobile companies to increase the price of their offerings in the year 2011.

Many companies have officially announced the price rise in their products and now next in line is the Indian major Mahindra & Mahindra to join the club.

Addressing the announcement, Mr Arun Malhotra who is the Vice President Sales in Mahindra, commented that a price hike in January 2011 is sure to happen and the rise will be in all segments including commercial and passenger vehicles. For now the exact amount by which the prices will increase is not disclosed but as per the officials, they are working on it and soon will reveal the exact figures.

Other major players in industry have already announced the rise of 1 to 1.5 per cent on their offerings from 1st Jan 2011. Mahindra & Mahindra is also expected to increase the price by similar value.

The exceptional increase in raw material cost is posing a big problem on the automobile manufacturers as it is resulting in prominent price rise. There are companies which have declared a price rise on selected models while the other remains unaffected. Like Toyota Motors have declared a price hike on its products from 2011 but its new launch Toyota Etios Sedan will not be affected with it. Similarly, Tata Motors have announced upcoming hike in prices on Tata models but Tata Nano is debarred from the group. Thus an increased input cost has triggered a chain reaction and all automobile majors are declaring increase in prices.

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