Mahindra & Mahindra considers another SUV price hike due to rising material costs

Mahindra and Mahindra may increase prices across its sports utility vehicle lineup soon because raw material costs are going up. Nalinikanth Gollagunta, who is the Automotive President and CEO at the company, said a final decision will be made in the next couple of weeks. The carmaker has already raised prices three times this year in January, April, and July, with the July hike being about 2.7 percent on SUVs. Despite these earlier price bumps, Mr. Gollagunta noted that customer inquiries and bookings remain strong because vehicle prices are still lower than they were before the Goods and Services Tax changes. He also expects festive season demand to stay high due to these lower price levels and new vehicle options. Regarding engine technology, the company remains mainly focused on electric vehicles because government rules and fuel efficiency norms favor them over hybrids, though the firm can adapt if rules change. To support upcoming demand and new models, Mahindra plans to increase its monthly production capacity from 68,000 units up to 84,000 units within six months. This expansion will raise internal combustion engine capacity from 60,000 to 70,000 units and electric vehicle capacity from 8,000 to 12,000 units by late March or early April. The company also has five product refreshes and two major launches planned over the next two quarters, featuring one big release for traditional engines and one for electric vehicles.