Mahindra Auto begins 2021 dealing with a multitude of business developments across the spectrum
January 2021 brought with it a price revision across auto manufacturer product portfolios. For Mahindra, the new year also meant the JV with Ford announced in 2019 was called off. There’s no current update regarding what comes off the JV vehicles that were under consideration between Ford and Mahindra.
Mahindra is also addressing the shutting down of Pininfarina Engineering in Italy. And SsangYong is filing for bankruptcy in South Korea. All of these developments would independently have effected future product and design prospects.
Price increase for MY21 Mahindra
Veejay Nakra, CEO – Automotive Division, M&M Ltd., “The price increase was necessitated due to unprecedented increase in commodity prices and various other input costs over the past many months. We have made all efforts to reduce our costs and deferred price increase for a significant duration, but due to the quantum of input cost increase, consequently we are taking this price increase effective January 8, 2021.”
Mahindra announced an increase in price for its PVs and CVS wef today, January 8, 2021. Price increase is in the range of about 1.9 percent. That ranges from Rs 4,500 – Rs 40,000, depending on the model and variant.
Price increase on the recently launched new Thar is effective for all bookings done between December 1, 2020 and January 7, 2021. All fresh bookings for Thar will be available at prices as applicable on date of delivery. Realistically, that could involve two more price hikes before some deliveries, considering wait time in certain instances is up at 10 months.
Traditionally price hikes are a gradual process wherein increases are effected more than once each year. The first opportunity being the start of the year when new MY vehicles go on sale. The gradual design of the price increase process helps put a cap on price rises, usually at around the 2 percent mark.
Mahindra sales and upcoming launches
In December 2020, Mahindra reported UV sales at 16,050 units at 5 percent YoY growth. Majority of Mahindra car sales came via Thar, Bolero, XUV300 and Scorpio.
Car sales attributed by the electric vehicle division fell 72 percent, down to 132 units. Total passenger vehicle segment (UVs + cars) growth was reported at 3 percent at 16,182 units. Despite growth, and new Thar launch in Q3 FY21, Mahindra slipped from its podium spot having faced stiffed competition from Kia Motors and Tata Motors.
New generation Mahindra XUV500 and Scorpio are currently undergoing test runs for their impending launches in 2021. The brand has also registered the name ScorpioN as well as Scorpio Sting. Domestic wholesales and exports in its Farm Equipment sector grew last month.
