New Delhi: Auto majors Tata Motors and Mahindra & Mahindra on Tuesday announced price increases in the range of 1-2 per cent citing higher input costs.
Mahindra & Mahindra raised prices by up to Rs 11,500 (ex-showroom) of passenger and commercial vehicles, and tractors, while Tata Motors hiked prices of its commercial vehicles in the range of 1-2 per cent.
"We have been holding back on the price hikes for a while but now it has been necessitated to partly offset the impact of rising input costs," Mahindra & Mahindra chief executive-automotive division and international operations Pravin Shah said in a statement.
The Mumbai-based company has increased prices of its passenger and commercial vehicles from this month by an average of 1 per cent, in the range of Rs 2,300 to Rs 11,500 (ex-showroom).
Besides, the $16.5-billion Mahindra Group's farm equipment sector (FES) also raised tractor prices in the range of Rs 6,000-Rs 10,000 depending upon the model, staring this month.
"The price hike has been necessitated owing to increase in commodity prices and conversion costs," the company said.
When contacted, a Tata Motors spokesperson told PTI, "From October to November, the company has raised the prices of commercial vehicles in the range of 1-2 per cent across categories."
The company has not taken a decision yet on hiking passenger vehicle prices, the spokesperson added.
Tata Motors sells a range of commercial vehicles such as light CVs, buses and trucks. It also sells a range of passenger vehicles comprising models from entry-level hatchback Nano to multi-utility vehicle Aria.
Mahindra sells a range of passenger vehicle models including Scorpio, Bolero and XUV500 and commercial vehicle models like Alfa and Gio. It also markets a range of tractor models such as Arjun and Yuvraj.
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