Mahindra Hints To Hike Up The Prices in 2020

At a press meet in Mumbai, Pawan Goenka, MD, Mahindra & Mahindra hinted that passenger vehicles could see a big price hike in the days to come. For the sake of meeting the requirements of India’s latest crash test and emission norms, the car price will increase due to the upgrades cost. 

It is necessary for the car purchaser to be aware of the cost implications. For the new car, more stringent crash test norms have already taken a look at norms from October 1, 2017. As for the new one, it will be applied to all cars on sale from October 1, 2019.

From April 2020, to meet the BS-VI emission norms, the expenses are also added up by the car upgrading cost. The cost for the BS-VI emission will be higher for diesel cars. It could be explained by the fact that the former one is forced to fit with diesel particulate filters and selective catalytic converters. This can have a significant impact on the automakers, especially, Mahindra & Mahindra, which owns a diesel-heavy portfolio. The diesel car price is estimated to go up by more than Rs 1 lakh in 2020.

From April 2020, to meet the  BS-VI  emission norms, the expenses are also added up by the car upgrading cost. 

Mahindra MD Pawan Goenka said that the high costs involved in upgrading the models to meet the safety and fuel norms could also mark the end of the road for some low-volume models. However, he emphasized that there will be no impact on in-demand models such as the Scorpio and the XUV500. 

"When it comes to BS-VI norms since there is a lot of investment required, there will be a corresponding price increase that might happen along with a price increase due to the safety norms. Hence, we are taking a decision on which models we may decide to not continue beyond March 2020.” 

He added 

"Nearly all our models, with the exception of one or two low-volume products, will meet the new safety norms." 

Accordingly, there's a question mark around the NuvoSport as well as the Verito sedan which is unknown to be discontinued or not, as Mahindra hasn't produced or sold a single unit of the SUV since April 2018.

Check out the latest car news from Mahindra by visiting our website - IndianAuto.com

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