Mahindra & Mahindra (M&M) advanced 2.04% to Rs 759.60 after the company announced price increase for its personal & commercial range of vehicles from 8 January 2021.M&M announced that effective 8 January 2021, the prices of its range of personal and commercial vehicles will increase by around 1.9%, resulting in an increase of Rs 4,500-Rs 40,000, depending on the model and variant.
In the case of all new Thar, the current price increase will be effective for all bookings done between 1 December 2020 and 7 January 2021. All fresh bookings for Thar, effective 8 January 2021, will have prices as applicable on the date of delivery.
According to Veejay Nakra, chief executive officer (CEO) of Automotive Division, M&M, has stated: "The price increase was necessitated due to 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 input cost increase, consequently we are taking this price increase effective January 8, 2021."
M&M reported 59.7% decline in net profit to Rs 148.36 crore in Q2 FY21 from Rs 368.43 crore in Q2 FY20. Net sales fell 1.5% year-on-year (Y-o-Y) to Rs 23,566.75 crore during the quarter.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
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