Bengaluru: Mahindra & Mahindra is not looking at hiking vehicle prices from January next year unless it is pushed by a significant hike in raw material prices, a top company executive said on Thursday.Car makers usually announce price hikes from January each year.
"We will not take price hikes right now, unless they are driven by a significant raw material price," Mahindra & Mahindra (M&M) Executive Director and CEO for auto and farm sectors Rajesh Jejurikar told reporters here.He was replying to a query about the company's plans to hike vehicle price from January next year.
"We are very mindful that the country has taken a very significant milestone action of reducing GST, and we will not do anything which undermines that strategy by driving a profiteering objective to take prices up," Jejurikar stated."So we will take prices up only if there is a very visible and tangible increase in manufacturing cost. We will not announce a price increase just because that's the typical habit," he added.
Carmakers have announced price cuts with effect from September 22 to pass on the GST rate cut benefit to customers.The GST Council's decision to rationalise tax rates allowed most small and medium-sized cars into a lower tax bracket of 18 per cent from 28 per cent while also reducing the effective tax for most large SUVs and luxury vehicles from around 50 per cent to a flat 40 per cent.
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