Mahindra Eyes Another Price Hike Amid Rising Costs

Mahindra & Mahindra is actively considering a potential price increase for its SUV lineup as escalating commodity costs put pressure on operational expenses. This would mark the fourth such adjustment this year, following hikes in January, April, and July, the latter being a 2.7% rise across its SUV portfolio.

Company officials are closely monitoring raw material price trends and are expected to make a decision on the proposed hike within the next couple of weeks. Demand for Mahindra vehicles remains robust, partly attributed to prices still being below pre-Goods and Services Tax (GST) levels. This, coupled with a refreshed product line-up, is anticipated to support sales during the upcoming festive season.

Mahindra remains committed to electric vehicles (EVs) as the future direction for the country's automotive sector, aligning with government objectives. While focusing on EVs, the company maintains the flexibility to adapt if regulatory environments shift. Current internal combustion engine (ICE) capacity stands at 60,000 units monthly, with EV capacity at 8,000 units. These capacities are scheduled for increases by early April 2026, to 70,000 units for ICE and 12,000 units for EV.

Furthermore, the automaker has planned several product refreshes and two major launches—one ICE and one EV—within the next two quarters, necessitating the planned capacity expansions. These strategic moves are aimed at maintaining sales momentum and catering to evolving market demands.