New Delhi: Mahindra and Mahindra Ltd, or M&M, the country’s largest maker of utility vehicles and tractors, may raise the prices of its vehicles if commodity prices continue to advance amid the resurgence in India’s auto sales.
“October has been the best month in passenger cars, which saw 30% growth. For M&M, the UV (utility vehicle) segment saw a 32% increase,” M&M president (automotive sector) Pawan Goenka told reporters on the sidelines of the India Economic Summit in New Delhi on Sunday. “However, there are two or three main concerns. There are some shortages in supplies. With commodity prices going up it could result in a price increase.”
Replying to a question about the timing of such an increase, Goenka said: “It could happen. We review these inputs constantly. There has been an increase in steel prices, tyre prices. If these prices remain okay, then we are fine.”
Steel prices gained as much as 33% while rubber prices rose 29% last quarter.
In another development, M&M is also in discussions with Renault SA to launch more models on the Logan platform, he said. “We are in discussions with Renault, but I can’t confirm anything right now,” Goenka said.
M&M has a joint venture with Renault to make the Logan. The deal between the two companies is currently restricted to the Logan. When asked about reports of a strain in ties between Renault and M&M in the Logan joint venture, Goenka denied that his firm had held any talks with its overseas partner on the issue.