Auto majors Tata Motors and Mahindra & Mahindra today 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, commercial vehicles and tractors, while Tata Motors has 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, Farm Equipment Sector (FES), a part of USD 16.5 billion Mahindra Group, has also increased 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 hasn't 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 vehicles including the Scorpio, Bolero and XUV500 and commercial vehicles like Alfa and Gio. It also markets a range of tractor models like Arjun and Yuvraj.
