Mahindra SUVs to become costlier in India soon
What's the story
Mahindra & Mahindra is mulling a price hike across its entire SUV range, PTI reported. The potential increase comes in light of rising commodity costs. Mahindra Automotive President and CEO Nalinikanth Gollagunta confirmed the company's plans to closely monitor these costs and decide on a price adjustment in the coming weeks.
Pricing strategy
Mahindra has already increased prices thrice this year
This year, Mahindra has already increased prices three times - in January, April, and July. The last hike was around 2.7% for its SUVs.
Despite these increases, Gollagunta said there has been no major impact on customer inquiries or bookings as vehicle prices are still below pre-GST levels.
This price positioning has helped maintain demand despite inflationary pressures across the auto industry.
Strategic outlook
Strong demand expected in upcoming festive season
Gollagunta is optimistic about the upcoming festive season, expecting strong demand for Mahindra and the broader auto industry.
He attributes this to lower effective prices and a refreshed product portfolio.
On hybrid technology, he said that while Mahindra is focused on electric vehicles (EVs), it can adapt its product strategy if the regulatory environment changes in India.
Capacity expansion
Production capacity and product refreshes
Currently, Mahindra has a monthly production capacity of around 60,000 internal combustion engine (ICE) vehicles and 8,000 EVs.
This is expected to increase by the end of March or early April 2027 with ICE capacity rising to 70,000 units and EV capacity to 12,000 units.
The company also plans five product refreshes (some already launched) and two major launches over the next two quarters: one in the ICE segment and another in EVs.