Mahindra Xuv 500, Xylo and Other Models to Go Expensive

The devaluation of Indian currency is expectedly hitting every segment of the Indian economy and the auto makers of the country are reacting to the same with hike in prices of their products. Reportedly, the Indian auto giant Mahindra and Mahindra is also planning on hiking up the prices of the passenger and commercial vehicles. The official announcement might hit-in in a few days about a hike in prices of the entire model range by 10 to 15 percent in response to the depreciation in the value of Rupee.

Being based out of India, the company’s localisation levels are pretty high but the import of some critical raw materials from foreign markets is inevitable for most of Mahindra India’s vehicles. Now since the value of rupee is going down the import costs are more like a burden and like in the case of every other automaker the costs have to be passed down to the customers only so that the companies can retain their margins. The bookings of the power-packed Mahindra XUV 500, which are supposed to commence on 8^th of June 2012 will see a price hike of over 10 percent.

The same is going to be followed in other models like Mahindra Xylo MPV, Mahindra Bolero and Mahindra Verito. It has already been seen that Toyota India has also hiked the prices by 1 percent and similarly other carmakers are expected to follow the suit to relieve themselves from the strain. Some car makers are following different strategy like Honda Motors is planning on offering discount on the petrol cars in order to compensate for the dropping demand of petrol cars these days, which are a result of the simultaneous hike in the fuel prices. The problem revolves around the hike in fuel prices and depreciation in the value of Rupee but the measures taken to balance the impact, by different car makers are different and pretty interesting.

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