Indian multinational vehicle conglomerate Mahindra & Mahindra (M&M) on Friday announced a hike in the prices of its range of personal and commercial vehicles by around 1.9 percent with an instant effect.

M&M, part of the USD19.4 billion Mahindra Group, will raise the prices of a range of personal and commercial vehicles by Rs 4,500 - Rs 40,000, depending on the model and variant, the automaker said in a regulatory filing. M&M added in the case of new Thar, the current price increase will be effective for all bookings done between December 1, 2020 and January 7, 2021. All fresh bookings for the new Thar, effective January 8, 2021, will have prices as applicable on the date of delivery, the company added.

Veejay Nakra, CEO Automotive Division, M&M said the price increase was necessitated due to an unprecedented increase in commodity prices and various other input costs over the past many months.

"We have made all efforts to reduce our costs and deferred price increase for a significant duration, but due to the quantum of the input cost increase, consequently we are taking this price increase effective January 8, 2021,” he added. Last month, the company has said it will increase the prices of its entire range of passenger and commercial vehicles effective January 1.

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