Mahindra & Mahindra Ltd.

BSE: 500520 | NSE: M&M
Large Cap | Automobiles - Passenger Cars
3602.90
15.90 (0.44%)
< Home < Back

Maruti, M&M, Ford, Toyota gear up for price hike

Date: 16-06-2010

Companies like M&M, General Motors, Ford, Toyota and Maruti are preparing to raise prices for the fourth time this year in July as raw material costs go through the roof. The companies are negotiating the extent of the hike with their vendors.

Prices of commodities like steel and rubber have gone up by 20-25% since the second quarter of the previous financial year, with most of the increases coming in April-May. But, with passenger vehicle sales rising 35% in April-May over last year, companies could pass on part of the commodity price hike to customers without worrying about losing market share.

Car prices have already seen three mark-ups this year — an input cost-driven hike in January, followed by a 2% excise duty hike in the Union Budget and another hike on account of the move to higher emission norms. crackcrack