The price hike has become a reality after several days of postponement. After Honda announced the quantum of hike, Mahindra & Mahindra has followed suit. It has upped the prices of all its vehicles between Rs 3,450 to Rs 21,000. The price rise is applicable across all its models.
According to a press release issued by the company on Friday, “the company has revised the prices in the range of 1.5 percent to 2.5 percent. The move was necessary considering the rise in inputs costs. The increase in prices will come into effect from May 19, 2008.”
However the company has left entry level sedan Logan from the purview of price rise. The sedan was developed and marketed under a joint venture with French car manufacturer Renault. Currently, Logan is being produced and marketed by an independent body comprising of officials from both companies.
The prices of several raw materials like steel, aluminum, rubber, plastic have seen an overall increase of 25-30 percent since January 2008, which has added pressure on the car manufacturers to go for a price hike, across all their models.