Shares of Mahindra & Mahindra (M&M) hit a 52-week high of Rs 768.75, up 3 per cent, on the BSE in intra-day trade on Friday after the company announced price increase for its personal & commercial range of vehicles from today, January 8, 2021, due to rise in input costs. The stock surpassed its previous high of Rs 764.10, touched on December 8, 2020.
The company further said that in the case of new Thar, the current price increase will be effective for all bookings done between December 1, 2020 and January 7, 2021. All fresh bookings for new Thar, effective January 8, 2021, will have prices as applicable on the date of delivery, it said.
The management said the price increase was necessitated due to the unprecedented increase in commodity prices and various other input costs over the past many months. "We have made all efforts to reduce our costs and deferred price increase for a significant duration, but due to the quantum of the input cost increase, consequently we are taking this price increase effective January 8, 2021," said Veejay Nakra, CEO – Automotive Division, M&M.
M&M had already increased the price of its range of tractors, across models with effect from January 1, 2021 due to the increase in commodity prices. The wholesale volumes of tractor continued to be strong, fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher Rabi acreage, government support in Kharif procurement & rural development schemes, the company said.