Mahindra & Mahindra Ltd. has announced a price increase of up to 3% for its SUV and commercial vehicle range, effective April 2025. The automaker cited rising input costs and higher commodity prices as key reasons for the hike. The extent of the increase will vary across different models and variants.
This follows Hyundai Motor India Ltd.'s decision on Thursday to raise prices by up to 3% starting next month, attributing the move to increased raw material costs, higher operational expenses, and inflationary pressures. Kia India has also announced a similar price hike, effective April 1.
The latest round of price increases comes as automakers grapple with rising costs across the supply chain. Tata Motors Ltd. and Maruti Suzuki India Ltd. have already implemented multiple price hikes this year. Tata Motors recently raised prices of its commercial vehicles by 2%, while Maruti Suzuki increased prices by up to 4%, depending on the model.
Automakers Feel the Pinch
Automakers are facing escalating costs due to supply chain disruptions, higher logistics expenses, and increased raw material prices, according to a report by S&P Global. The situation has been exacerbated by concerns over potential new tariffs under US President Donald Trump's administration, adding further uncertainty to global trade.
Even before the tariff concerns, India's auto and the broader consumer sector were navigating a slowdown in consumer demand. Festive and year-end sales were weaker than expected, reflecting cautious consumer spending. The latest price hikes could further test demand in the world's third-largest car market, where moderating sales have already pressured automakers to balance costs with affordability.
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