Car News Mahindra Cars

Mahindra targets 13% growth in FY17 despite hike in price

 
Modified Mahindra Bolero

When the diesel car ban was first announced, it was believed that the Indian brand would suffer huge losses.

With only diesel vehicles on offer (except KUV100), Mahindra could have been affected badly due to the changes in norms announced in some Indian cities over the past few months. Ranging from complete ban on diesel car sales to paying 1% cess to govt on sale of each diesel car, Mahindra has seen it all.

Despite this, the Indian brand has revealed that they have not been affected as far as sales of their new cars is concerned. In fact, the company is aiming for a 13% growth this fiscal.

Mahindra KUV100 Yellow Colour

The Supreme Court offered relief over the earlier ban on diesel vehicles above 2000cc capacity and introduced a 1% additional cess on diesel cars which Mahindra and Mahindra state will be easily managed.

This 1% green cess on diesel cars will not put a damper on sales in any way. For eg, diesel vehicles under 2 liters also attract 1.5% extra excise duty. So it’s not that only vehciles with more then 2000 cc engine are affected. What is also playing in their favour is the increase in sales of large diesel SUVs in some states.

Accessorized Mahindra NuvoSport

Accessorized Mahindra NuvoSport

Mahindra and Mahindra have stated that the company will absorb a part of this 1% green cess while a portion will also be passed on to customers. Mahindra has also shifted focus to produce cars with less than 2 liter capacity engines, which can be seen in the case of the Scorpio and XUV500. Soon, even the Mahindra Xylo will receive the 1.99 liter cc engine.

Apart from this, added investment into petrol technology and electric and hybrid vehicles are on track. Importance will also be given to Bio and CNG technologies, even as Mahindra and Mahindra seeks to ensure that they have qualified engineers the deal with these new projects.

Customized Thar

via Hindu Businessline

 

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

Email - pearl@rushlane.com