Pawan Geonka, President of Automotive Sector, Mahindra & Mahindra, has inferred that increases in the cost of raw materials may force an increase in vehicle retail prices in the near future.
An article posted this morning by Moneycontrol.com quotes Goenka:
“We will try and not increase prices in the third quarter, while absorbing increases in the input costs. But if they go up as much as last year, we will have to pass it on to the consumers,”
This news could be yet another hurdle to clear for the US market TR20 and TR40 pickups expected to launch in February of 2010. Since no pricing has officially been set by Mahindra or the US importer, Global Vehicles, it’s not clear how the increase in input costs will trickle down to the Indian-built, US marketed pickup trucks.
Last week, Mahindra Planet posted a chart with completely speculative pricing hierarchy. We took the current Australian market prices, converted them to USD, and then added 25% in order to come up with a completely unscientific estimate of what American buyers might expect to pay for versions of the TR20 and TR40.
The complete Moneycontrol.com article can be found: Here