Mahindra & Mahindra hints at hiking vehicle prices in Q1 next fiscal
Mahindra & Mahindra Ltd on Friday hinted at a possible price hike of its range of vehicles in the next few months due to rising commodity prices.
The company, which was recently reported to have cut jobs in its North American operations, is likely to reduce it further even as it prepares to launch its off-roader vehicle Roxor.
“We have just taken some price increase in January and unless things come under control we would probably be taking one again in Q1 of the next financial year,” Mahindra & Mahindra (M&M) Executive Director Automotive & Farm Sectors Rajesh Jejurikar told reporters in a virtual post-earning press conference.
He was responding to a query on the impact of rising commodity prices and how the company was planning to offset it.
Jejurikar further said, “We do try to mitigate this kind of commodity increase with other internal cost measures, both on material cost and value engineering, and managing fixed cost. So typically when we have this kind of situation we use multiple levers to manage”.
Last month, the automaker announced a price increase of personal and commercial vehicles by around 1.9 per cent with immediate effect.
Commenting on the job cuts in the company’s North American operations, he said the manpower rationalisation was not around the tractor business but was mainly around the product development centre in Detroit as M&M decided not to go ahead to bid for a contract of United States Postal Services.
“That team was not going to be doing the development work that was at the concept stage. So, it is really around that and has nothing to do with the tractor business,” he added.
When asked if there are possibilities for further job cuts in the North American unit ahead of the planned launch of the off-roader Roxor, Jejurikar said, “We just got approval for the new Roxor model. We are working on a relaunch approach, Details not finalised but we may go for much more digital and there may hence be some manpower restructuring beyond what has already happened because there was no production really happening in the last few months”.
Stating that the relaunch of the new Roxor will take a few more months without sharing a definite timeline, Jejurikar said, “We will then be working on what exactly is the right resourcing for the launch. Manpower number is not finalised”.
M&M Deputy Managing Director and Group CFO Anish Shah said the company has also rationalised manpower at engineering services of the Italian unit Pininfarina as it had “excess count compared to what the market demand was”.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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