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“The price rise has been necessitated as the launch price was an introductory invitation price and there has been a considerable impact of increase in raw material costs and the rupee depreciation with respect to dollar and euro:” Mahindra & Mahindra
Auto major Mahindra & Mahindra said it would hike prices of its sports utility vehicle XUV500 by up to Rs55,000 with effect from 1 January 2012 on account of the falling rupee and rising input costs.
The company will restart bookings of the SUV, which was stopped in October 2011, from next month. "This price rise has been necessitated as the launch price was an introductory invitation price and there has also been a considerable impact of increase in raw material costs and the rupee depreciation with respect to dollar and euro," M&M said in a statement.
The prices of the three variants of the vehicle will be hiked by Rs30,000, Rs50,000 and Rs55,000 (ex-showroom, Delhi), respectively. The company had launched XUV500 on 29 September 2011, with price ranging from Rs10.8 lakh to Rs11.95 lakh (ex-showroom, Delhi). The bookings began on 1 October 2011. M&M said, however, that for customers who have already placed orders for the SUV and whose delivery have not been made yet, the price will go up by just 50% of the proposed hike. The bookings of the SUV were stopped since 11 October 2011, after it received over 8,000 orders in just 10 days.
"The production for the XUV500 is as per schedule and the company is also in the process of further ramping up production at its plant in Chakan, which will enable it to re-open bookings in January 2012," the statement said without sharing details.
Earlier this month, M&M had said it will raise the prices of its entire range of vehicles by up to 3% from January 1 due to rising input costs.
In the late afternoon, Mahindra & Mahindra was trading at around Rs686.70 per share on the Bombay Stock Exchange, 0.01% down from the previous close.
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