Mahindra & Mahindra (M&M) on Tuesday said that it will increase prices of its passenger and commercial vehicles from January 1, 2021. The decision to hike prices has been taken due to rise in commodity prices and various other input costs.
The Anand Mahindra-led auto major, however, did not disclose the quantum of price hike. Details of the price increase across different models will be communicated in due course, it said.
"Mahindra & Mahindra Ltd. (M&M), part of the $19.4 billion Mahindra Group, today announced that effective January 1, 2021, the company will increase the price of its range of passenger and commercial vehicles, across models. This has been necessitated due to the increase in commodity prices and various other input costs," the Mumbai- headquartered firm said in a regulatory filing.
Last year, Mahindra had announced a price hike of up to Rs 73,000 for its passenger and commercial vehicles, effective from April 1, 2019. The company sells a range of passenger vehicles, including XUV 500, Scorpio, TUV 300 and KUV 100.
During July-September quarter, the auto major reported an 88 per cent year-on-year decline in its net profit after tax (PAT) at Rs 162 crore, dented by impairment losses. Total revenue was up 6 per cent to Rs 11,590 crore from Rs 10,935 crore in the year-ago period.
The Mumbai-based firm sold 87,332 units in Q2 FY21, down 21 per cent from 1,10,824 units in the year-ago period. Tractor sales, however, rose by 31 per cent to 89,597 units from 68,359 units a year ago.
Mahindra's overall auto sales (passenger vehicles + commercial vehicles + exports) grew by 4 per cent to 42,731 vehicles in November 2020, compared to 41,235 in the year ago period. In the utility vehicles segment, Mahindra sold 17,971 vehicles last month, compared to 14,161 vehicles in November 2019, registering a growth of 27 per cent. The passenger vehicles segment (which includes UVs, cars and vans) sold 18,212 vehicles in November 2020, a growth of 24 per cent over same period last year.
Ahead of the announcement, shares of M&M ended day's trade at 718.25, up 1.01 per cent, against previous closing price of Rs 711.10.
By Chitranjan Kumar