M&M hikes prices for third time in 2011
PTI September 5, 2011
Auto major Mahindra & Mahindra on Monday said it raised prices by up to two per cent for its entire range of products last month to offset the impact of high raw material rates.
"Margins have been a concern as raw material prices were going up in the past. We hope that it will come down in the future... We raised the prices last by 1.5-2 per cent," Mahindra & Mahindra (M&M) Senior Vice-President (Marketing - Automotive Sector) Vivek Nayer said.The company undertook price revision of various products across all categories, he added.
This is the third price has been increased by the company in 2011. Earlier, in January this year M&M had raised vehicle prices by about 1.5 per cent, followed by another upward revision of 1.5-2 per cent in April.
The company sells utility vehicles like 'Scorpio' and 'Bolero' along with three-wheeler commercial vehicles. It also manufactures and sells sedan 'Verito'.
When asked about sales, Nayer said: "July and August have been very good. Now we are hoping better sales in September and October on account of the festive season."
He, however, said the company is observing the movement of interest rates on auto loans "cautiously" as it can have an adverse impact on customer demand.
In the domestic market, M&M registered a rise of 31.09 per cent at 35,756 units in August compared to the year-ago period. In July, it had witnessed a jump of 41.90 per cent at 37,323 units over the same period in 2010."All our products are doing very well. Our core products as well as new additions have done well," Nayer said.
Products like 'Scorpio' and 'Verito' are helping the company to register robust growth in the recent past, he said.
Asked whether the company will introduce a new version of Verito in the sub-four metre length category, Nayer said: "It is under consideration. To avail lower taxation, this change is being considered."
He, however, declined to share further details such as a
possible time of launching the new variant of car.