Mahindra & Mahindra, the leading manufacturer of utility vehicles in India has expressed its consideration of a marginal price hike on its range of vehicles in the coming quarters. The slight increase of prices on Mahindra vehicles are said to be due to higher input costs. M&M automotive and farm equipment sectors, president, Pawan Goenka told reporters, "We may see a little price hike in our vehicles soon as input costs are increasing." He further added, "Since commodity cost pressure is not very high, the price hike will be marginal."
In July 2013, Mahindra & Mahindra had increased prices on its entire range of vehicles by 0.5 percent to protect margins from rising input costs and rupee depreciation. The auto major had also increased prices of its vehicles by 2.5% last year.
The Indian auto industry is definitely not in its best period with sales declining for ninth straight months. The Indian auto market looks even more challenging in the coming months with no sign of growing demands, falling rupee value, tough economic environment and lack of support from the government. In such grim situation how effective will be the idea of price hike even marginally for Mahindra is unclear.