M&M to hike prices by 1-2% to offset rising input costs

Says all of Mahindra's SUV and multi purpose vehicles have been impacted by the increase in excise duty

Auto major Mahindra & Mahindra today said it will hike prices of some of its models by 1-2% soon to offset increasing input costs and inflation.

"We will be soon announcing a price hike of 1 to 2% in order to offset increasing input costs and inflation," Mahindra & Mahindra President (Automotive and Farm Equipment Sectors) Pawan Goenka told reporters here on the sidelines of CII annual conference.

He, however, did not share the details about which models would be impacted by the price hike.

When asked about the SUV tax, he said the company is awaiting a clarification from the Finance Ministry after the issue was taken up by industry body SIAM as well as Ministry of Heavy Industries and Public Enterprises.

He said all of Mahindra's SUV and multi purpose vehicles have been impacted by the increase in excise duty to 30% from 27%, as announced in the Budget.

When asked about the response to the company's electric car 'e2O' he said, the orders have been a bit disappointing, although, there has been widespread appreciation of the product among media and consumers.

He added that subsidy related pricing has been a concern with the consumers.