The largest utility vehicles-maker Mahindra & Mahindra, which today announced its best-ever monthly sales for Septemeber at 48,342 units, said it will be hiking prices of its various models to the tune of 0.50-1.5 percent very shortly to offset the impact of input costs on the profitability.
"There has been almost 2 percent rise in the input costs, primarily steel, in the recent past. Accordingly, to offset the same on margins and profitbality, we will soon be hiking the prices of our various models by 50-150 basis points. A formal announcement will be made very shortly," M&M chief executive for automotive division Pravin Shah told reporters here.
When asked about the possible impact of the price hike on the forthcoming festive sales, Shah said, everybody has done it and M&M cannot but follow suit.
On the record sales numbers, Shah the numbers are good and have bettered the company's September 2010 record, which was helped by the festive demand that year.
M&M recorded an all-time high monthly sale of 48,342 units, representing a 10 percent rise over the year ago period when it stood at 44,137 units, Shah said.
The half-yearly consolidated sales numbers stood at 2,67,266 units, up by 20 percent over the same period last fiscal, he added.
On the response to its latest model, compact SUV the Quanto, which is pitted against Swift and Hyundai i10 and i20, he said it has been good so far with the bookings touching 3,200, which is in line with our expectations.
September saw the company's passenger vehicles registering a growth of 22 percent at 23,808 units.
Domestic sales stood at 45,263 units in September as against 41,136 units a year ago, logging in an increase of 10 percent. The four-wheeler segment, which includes passenger and load categories, has also registered a growth of 7 percent, Shah said.
Exports rose to 3,079 units in the first half of the fiscal, clipping at 40 percent.
However, the company saw sales dipping for its truck division by a nominal 1 percent during the first half. On his outlook for the festive sales, Shah said since the banks have started cutting lending rates