India’s No.1 SUV manufacturing automobile company Mahindra and Mahindra (M&M) has divulged that the company is planning a subsidiary boost in the prices of all its existing models very soon to increase the contribution outlay of manufacturing. Mr. Pawan Goenka, automotive and farm equipment sector president of M&M said that, the cost trudge will be trivial as product cost force is not incredibly far above the ground.
Last year the company witnessed a 2.5% increase and a further 0.5% increase in July of the same year, recorded for all of the now in-production models. Although M&M has not fully disclosed the details about the price hike, it can be expected to occur in just one month’s time. Not only M&M, the other legendary Indian automobile manufacturer Tata has also planned to increase the cost of their arsenal, some time before the festive season.
M&M witnessed a very bad negative growth this year, approximately 21% as of July 2013. The company traded almost 37,096 entities for the month of July 2013. This new value is exactly 9,963 automobiles less than last year’s value of 47,056 for the same month of last year. This percentage includes the SUVs, MUVs, the sedan Verito and the new hatch Verito Vibe. Even though the Vibe was not available on July last year the company sold exactly 22,011 cars, and this year it dropped by 6481 units with the new car, so that’s around 15,530 cars this year in July.
Even though automobiles sales have hit a new low all over the world, the company still plans to hike the price which is going to effect sales just by a wee bit.