Latest Car News in India

Mahindra cars to cost more due to fall in Rupee value

Car lovers will have to pay more to buy Mahindra XUV 500 or Mahindra Verito and other Mahindra SUV/MUV cars as the company may increase prices due to fall in the value of the rupees. The rupee has been losing value against major currencies of the world including dollar. It’s a bad sign for auto industry. The depreciation in the value of the rupee has become a cause of concern as it has weakened economic activities in the country. Following it, the demand of cars has also decreased and the manufacturing cost of the commercial and passenger vehicles have increased.

If the sources are to be believed, Mahindra & Mahindra may increase prices of all its car and SUV variants by 10% to 15%. As the value of rupee depreciated it resulted in increase in manufacturing cost of vehicles. Mahindra & Mahindra has to import many components from other parts of the world. The company has to pay increased prices of company, so it has decided to offer the commercial and passenger vehicles to its customers at an increased price. It will be the end-users of the vehicles which would face the impact of fall in the value of rupees.

Among the vehicles that would be offered in increased prices will be Xylo, Verito and Mahindra Bolero. Besides, XUV500 will also be sold at increased prices by 10%. Its not only Mahindra & Mahindra but the other car makers are also planning to increase prices of their vehicles due to fall in the value of rupees. Car companies in India are facing a different and difficult situation. The demand of cars has taken a dip due to increase in petrol prices while the manufacturing cost of the vehicles has increased. The market experts said that the car companies have to take a call on increasing demands. Some of the car companies such as Fiat is offering huge offer on Fiat Linea TJet petrol as the demand has slowed down due to rise in petrol prices. Also, the increased cost of imported components pushed up the manufacturing cost prompting the companies to raise their prices.