Mahindra & Mahindra (M&M), one of India’s leading SUV and commercial vehicle manufacturers, has announced a price hike of up to 3% across its SUV and commercial vehicle (CV) lineup. The revised prices will take effect from April 2025. The company cited rising input costs and increasing commodity prices as the primary reasons behind this decision.

Reason for the Price Hike

M&M has attempted to absorb a significant portion of the rising costs, but due to increasing raw material expenses, production, and logistical costs, a partial burden will be passed on to customers. The extent of the price increase will differ across various models in the company’s SUV and CV portfolio.

Sales Performance and Growth

Despite increasing operational costs, Mahindra continues to witness strong demand in the market. The company recently reported total auto sales of 83,702 vehicles in February 2025, reflecting a 15% year-on-year growth, including exports.

Utility Vehicles (SUVs):

50,420 SUVs sold in the domestic market, marking a 19% growth.

52,386 SUVs sold overall, including exports.

Commercial Vehicles (CVs):

23,826 units sold in the domestic market.

Tractor Sales:

Total sales (domestic + exports): 25,527 units, up from 21,672 units in February last year.

Exports: 1,647 units.

Industry-Wide Price Hikes

Mahindra is not the only automaker increasing prices. Several leading car manufacturers, including Maruti Suzuki and Hyundai Motor India, have also announced price hikes effective April 2025. Additionally, Kia, Honda, and Tata Motors have confirmed similar price increases, citing rising input costs. Even luxury automakers like BMW have decided to adjust prices in response to increasing manufacturing expenses.

Challenges in the Automobile Sector

The Indian automobile industry has been grappling with escalating raw material prices and logistical expenses, significantly impacting overall production costs. Automakers across segments are being forced to revise pricing strategies to maintain profitability while continuing to meet demand.

Conclusion

With rising operational costs, Mahindra & Mahindra’s price adjustment is a strategic move to sustain its growth while managing financial pressures. As competition in the Indian automotive sector remains intense, consumers may witness further price changes across multiple brands in the coming months.