Mahindra SUV Price Hike: Thar, Scorpio, and XUV 7XO Set to Become More Expensive Mahindra & Mahindra is considering another price hike for its popular Thar, Scorpio, and XUV 7XO models due to rising commodity costs, marking the fourth increase this year. Indian SUV buyers planning to drive home a brand-new Mahindra vehicle during this festive season might have to shell out more money than expected. Mahindra & Mahindra is seriously considering another upward revision in the prices of its highly popular models, such as the Thar, Scorpio, and XUV 7XO. If the home-grown automaker decides to move forward with this price increase, it will be the fourth time within a single year that prices have been raised, dealing a blow to prospective festival buyers. Escalating Input Costs and Pricing Strategy In an interview, Nalinikanth Gollagunta, the CEO and President of Mahindra Automotive, revealed that the company has already implemented three price hikes this year, occurring in January, April, and July. The most recent price adjustment in July saw a hike of approximately 2.7% across their SUV lineup. Gollagunta mentioned that due to a recent rise in commodity and input costs, the management will evaluate the situation over the next couple of weeks to decide if another price adjustment is necessary to protect operational margins. Tax Reductions and Market Demand Interestingly, Gollagunta stated that the previous price hikes have not had any noticeable adverse impact on customer interest, inquiries, or vehicle bookings. He attributed this sustained demand to the fact that Mahindra's vehicles are still selling at prices lower than they were prior to the reduction in Goods and Services Tax (GST). Consequently, customer interest remains robust in the market. Looking ahead to the upcoming festive season, he expressed strong confidence that demand will remain highly elevated both for Mahindra and the wider automotive industry, fueled by the lower post-GST pricing and a refreshed product lineup. Electrification Over Hybrids When questioned about the company's stance on hybrid engine technology, Gollagunta emphasized that Mahindra's primary strategic focus remains firmly on electric vehicles (EVs). While the company is prepared to pivot its strategy if regulatory frameworks and government policies change in the future, electric mobility currently stands as its top priority and core development avenue. Scaling Up Production and New Launches Regarding manufacturing and production capacities, the company currently has the infrastructure to produce about 60,000 Internal Combustion Engine (ICE) vehicles and around 8,000 electric vehicles every month. However, there are aggressive expansion plans in motion. By the end of March or the beginning of April, Mahindra plans to scale up its ICE production capacity to 70,000 units per month, while boosting EV production capacity to 12,000 units per month. This will bring the company's total manufacturing capability to an impressive 84,000 units per month. Additionally, Gollagunta disclosed that the company will introduce several product updates and launch two completely new models over the next two quarters. What this means for you This potential price hike could affect your festive season budget if you plan to buy a Mahindra SUV. • Higher Acquisition Costs: A fourth price hike means buyers of the Thar, Scorpio, and XUV 7XO will face increased on-road prices. You might need to adjust your budget or reconsider financing options. • Festive Purchase Urgency: Since the decision on the price hike will be finalized in the next few weeks, locking in bookings now could save you money. Buying early helps you avoid the upcoming price increase. • Strong Resale Value: Frequent price hikes on new models often lift the market value of used SUVs. Existing owners of these vehicles might benefit from better trade-in or resale deals. • Wider Choice Ahead: Mahindra plans to launch two new models and several updates within six months. This gives you more options to choose from if you are not in a rush to buy. Why this happened The proposed price increase is driven by macroeconomic factors and Mahindra's long-term production and product strategy. The automotive industry continues to face supply-side pressures despite strong consumer demand. • Rising Commodity Costs: A key reason for the potential price hike is the recent increase in raw material and commodity prices. This has increased the manufacturing cost of vehicles, forcing the company to consider passing some of this burden to customers. • Substantial Demand Cushion: Mahindra has observed that previous price hikes in January, April, and July did not negatively affect customer bookings or inquiries. This resilient demand gives the company confidence that the market can absorb another price adjustment. • Strategic Capacity Expansion: The company is investing heavily in scaling up its monthly production from 68,000 to 84,000 units by next spring. Managing these massive manufacturing expansions and transitioning toward a larger EV footprint requires substantial capital. Questions & Answers 1. Which Mahindra models are expected to get expensive? Mahindra's highly popular models, including the Thar, Scorpio, and XUV 7XO, are expected to see a price increase. 2. How many times has Mahindra raised its prices this year? The company has already raised its prices three times this year, in January, April, and July. The upcoming hike would be the fourth. 3. Why is Mahindra planning to increase SUV prices again? The potential hike is being considered due to a recent increase in commodity and raw material prices. 4. What are Mahindra's monthly production capacity expansion plans? Mahindra plans to expand its total manufacturing capacity from the current 68,000 units to 84,000 units per month by late March or early April. 5. What is Mahindra's strategy regarding electric and hybrid vehicles? Mahindra is prioritizing electric vehicles (EVs) over hybrids, though they may adapt if government regulations change. https://trendkia.com/en/auto/mahindra-thar-scorpio-aura-xuv-7xo-ki-kimaten-phira-barhengi-sala-men-chauthi-bara-jhataka-dene-ki-taiyari-39418 TrendKia — Har trend, sabse pehle.