Mahindra Suddenly Increases Price Of Best Selling Cars By Upto Rs 63,000: XUV 700, Bolero & More
Mahindra is the latest carmaker to announce a price hike of 2.5% for its lineup.
It follows fellow automakers like Maruti Suzuki, Tata Motors which were all impacted by the steep and persistent increase in raw material costs.
The hikes will be in the range of Rs 10,000 to Rs 63,000, depending on the model and variant.
This is the company’s second price hike of 2022.
Common practice is to declare the hikes in a staggered manner throughout the year instead of in one go, so as to not spook customers.
Applicable To Pending Deliveries
The hike is effective from April 14 and will apply to cars that are yet to be delivered.
It had to offset the cost of continuous increase in prices of key commodities such as steel, aluminium, palladium and others.
It said that it had to take necessary initiatives to absorb the impact and pass a minimal percentage of cost increase to customers through a price revision.
Mahindra is now in the process of communicating the revised prices to its customers by working with its sales and dealer network.
Raw Materials Costs
OEMs like Maruti Suzuki, Tata motors CV segment, Hero MotoCorp, Suzuki Motorcycles, Audi, and BMW have already announced increase in prices.
For the carmakers, raw material accounts for 75% to 78% of the cost.
The price situation continues to be uncertain due to the ongoing geopolitical problems.
Prices of the key commodities of steel, plastics, aluminium, copper, rhodium, platinum, etc have been stubbornly high since 2020.
The hikes are unlikely to dent the company’s sales.
In the first quarter of this year, it reported sales of over 75,000 units- a growth of 42.85%.
In March 2022 alone it sold 54,643 units of its passenger and commercial vehicles.
This is a YoY sales growth of more than 35% from the 40,403 units sold in the same period last year.
Present And Future Lineup
Mahindra’s current lineup comprises XUV700, Alturas G4, Thar, Scorpio, XUV300, KUV100 NXT, Marazzo, Bolero, and Bolero Neo.
It is getting ready to launch the new-generation Scorpio, which should debut by early 2023.
Brand New EVs
It will unveil three new e-SUV concepts this July.
They will likely be named the eXUV300, eXUV700 and eXUV900.
The electric XUV300 will come up by the third or fourth quarter of 2023.
It is also going to launch a series of EV models starting from 2025.