Mahindra & Mahindra is considering another price increase across its SUV portfolio amid recent commodity price increases, with a decision expected within the next couple of weeks. According to reports from PTI, Automotive President and CEO Nalinikanth Gollagunta stated the company has already implemented three price increases this year - in January, April, and July, with the July increase being about 2.7% on sports utility vehicles. Gollagunta emphasized the dynamic nature of pricing decisions, noting the company continues to watch commodity costs closely. "We'll probably take a call in the next couple of weeks on whether we need a price increase... I can't say we will or we won't, but it's something we're looking at closely, given the recent price increases on commodities," he said to PTI.
Despite recent price increases, customer inquiries and bookings remain unaffected, with vehicles still priced below pre-GST levels. As reported by PTI, Gollagunta explained that demand continues to be robust due to the company's pricing strategy. The CEO noted that festive season demand should be strong for both Mahindra and the industry as a whole, supported by prices remaining below pre-GST levels and a refreshed product portfolio. "Festive should be very good for us, and across the industry, for a couple of reasons. We've had inflationary pressures, but the reality is the GST price cuts from last year are holding us all well below pre-GST prices, even with the inflationary price increases we've made over the past year or so," he said to PTI.
Regarding hybrid technology, Mahindra remains focused on electric vehicles and would adapt if the regulatory environment changes. According to PTI, Gollagunta highlighted the government's clear direction toward EVs through CAFE (Corporate Average Fuel Efficiency) norms, which provide differentiated benefits for electric vehicles versus hybrids. The company currently has about 60,000 units of monthly ICE capacity and 8,000 units of EV capacity, with plans to increase EV capacity to 12,000 units by March-April. "We're very clear in our minds -- EV is the end state the country is heading towards, and that's also what the government has made clear to the industry. If you look at the CAFE (Corporate Average Fuel Efficiency) norms, there's a very clear differentiation between the benefits given to an EV versus a hybrid. So our focus is on EVs to that extent," he said to PTI.
Mahindra plans significant capacity increases with ICE capacity expanding from 60,000 to 70,000 units and EV capacity rising from 8,000 to 12,000 units by March-April. As reported by PTI, the company currently operates at 68,000 units total capacity and will reach 84,000 units in six months. Gollagunta announced five product refreshes and two major launches planned over the next two quarters, including one major launch each on ICE and EV sides. "We'll have a set of refreshes coming -- some of this we've already talked about. We have about 5 (product) refreshes; a few have already happened, and two or three more are coming up. Other than that, we have two major launches coming within the next couple of quarters -- that's also why we've added the capacity," he said to PTI.
