Utility vehicles leader Mahindra and Mahindra on Monday announced a nominal 0.5% price hike across all models, expect for the premium sports utility vehicles XUV 500 and the Rexton from its Korean arm, despite falling sales, which dipped nearly 8% in June.
The company monthly sales for June fell to 38,092 units in June from 41,322 units a gear ago, a fall of 7.8%, the company said.
Announcing the 0.5 percentage point price hike across all models, M&M automotive division chief executive Pravin Shah said the increase, to protect margins from rising input costs arising from the falling rupee, would translate into an upward movement in the prices to the tune of Rs. 3,000 to Rs. 6,000, depending on the model.
The price increase is with immediate effect, he added.
The passenger vehicles segment (which includes the UVs and Verito) sold 17,232 units in June, as against 19,792 units a year ago, while domestic sales stood at 36,207 units against 38,951 units, Shah said.
However, the commercial four-wheeler segment, which includes the passenger and load vehicles registered saw a 5% growth, having sold 13,761 units, while the three- wheeler segment clocked 4,303 units.
Exports steeply declined in month to 1,885 units, from 2,371, a decline of 20%.
On the dip in sales, Shah said, "We have witnessed a de-growth in June amidst an overall decline in the auto industry. The falling rupee resulting in spiraling fuel costs coupled with high interest rates and the additional excise duty on SUVs has further dampened the industry without any substantial revenue to government.
"Going forward, we do hope that some immediate short term measures are announced and implemented by the government to bring back buoyancy in demand which is the need of the hour".