India Eco Summit: M&M may mull price hike

Home grown auto major Mahindra & Mahindra (M&M) today said it could consider increasing the prices of its products, if the commodity rates rise further.

"Yes, price increase could happen if commodity prices go up further," M&M President (Automotive Sector) Pawan Goenka told reporters on the sidelines of India Economic Summit here.

He, however, declined to give any time-frame for the revision of vehicle prices.

Asked about M&M's performance in this fiscal, Goenka said, "The sales for October were very encouraging and it grew 32 per cent. If it continues, we can have a double digit growth in this fiscal."

Goenka, who is also the President of Society of Indian Automobile Manufacturers (SIAM), said the domestic auto industry would do well in this fiscal, provided some concerns are taken care of.

"I'm very optimistic about the industry but concerns like shortage of components supplies from Jaipur (due to IOC depot fire), commodity prices going up and government talking about increasing excise duties can have an adverse implication," he said.

Asked about the falling sales of Logan, Goenka said, "Low volumes are a concern if we consider a single product but overall, if we see our total portfolio, it is OK."