Mahindra has announced a price hike of up to 2.5 percent wef today – April 14, 2022
Car price hikes are inevitable. Following a slew of price increase announcements by manufacturers, the latest to follow suit is Mahindra. While a number of manufacturer’s announced a price hike at the start of the quarter, Mahindra’s price revision is effective from today.
Mahindra Price Hike April 2022
For the Mahindra passenger vehicle range this will be at 2.5 percent. This equates to a price increase of Rs 10,000 to Rs 63,000 on ex-sh price, depending upon the model and the variant. Prices of all Mahindra cars have increased, including that of Thar and XUV700, which have a huge waiting period. Bolero, Scorpio, XUV300 have also gotten expensive from today.
Of course, price revisions are well thought of. And for this reason, one usually has to contend with numerous such revisions through any given year. To ensure the financial burden doesn’t make one’s eyes pop, such announcements are staggered through any given period.
This ensures the bill continually rises, but in small increments. This is in tandem with economic situations, and largely revolve around input costs. And that is an ever costly situation.
Price increase of key commodities
Mahindra attributes the current hike to the same. This helps keep up with increased prices of key commodities, including steel, aluminium, palladium, etc. In all fairness, company policies revolve around fair price practices, and Mahindra takes necessary ‘initiatives to partially offset unprecedented hikes in commodity prices to absorb the impact’. This means a minimal percentage of cost increase is then passed onto customers through a price revision.
Following the announcement, Mahindra is working with its sales and dealer network to communicate the same to customers in an appropriate manner. From a customer’s perspective, price hikes are no longer a surprise, considering the frequency at which they are announced. When vehicle shopping, manufacturers are often familiarised with impending price hike announcements, which are usually announced at the start of a new calendar year, at the start of a new fiscal year, and so on. This is pretty much standard practice across the auto industry.
Mahindra electric cars
With price revisions surely increasing price tags, some potential buyers are likely to go through with a purchase within a specified time to avoid an impending hike. However, such announcements don’t dictate purchase patterns.
Both previous months, February and March 2022 saw Mahindra report sales at just over 27k units each. Sales for the quarter just concluded were reported at just over 75k units following 42.85 percent growth. In furthering growth prospects, apart from updates to its regular cars, the chatter around its electric car drive has increased in recent months. This space is largely uncontested by the majority of manufacturers. In comparison, Mahindra already has some experience in this space.
