Mahindra Rules Out Routine January Price Hike, Cites GST Cuts & Stable Costs

Mahindra & Mahindra has indicated it won’t raise vehicle prices from January 2026 unless there’s a clear and substantial jump in manufacturing costs, particularly raw materials. The stance comes even as most automakers typically roll out annual price hikes at the start of the year.

Speaking to reporters on Thursday, Rajesh Jejurikar, Executive Director and CEO for the auto and farm sectors at M&M, said the company intends to stay aligned with the government’s recent tax revisions. “We will not take price hikes right now, unless they are driven by a significant raw material price,” he said when asked about plans for a January increase.

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Jejurikar added that Mahindra is

conscious of the wider policy environment following the GST rate cut. “We are very mindful that the country has taken a very significant milestone action of reducing GST, and we will not do anything which undermines that strategy by driving a profiteering objective to take prices up,” he said.

Instead, any future adjustment will depend entirely on actual cost pressure. “So we will take prices up only if there is a very visible and tangible increase in manufacturing cost. We will not announce a price increase just because that's the typical habit,” he noted.

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Carmakers have already reduced prices since September 22 to pass on the GST benefits to buyers. The GST Council’s restructuring brought most small and mid-size cars into an 18% tax bracket instead of 28%, while large SUVs and luxury models saw their effective rate drop from around 50% to a flat 40%.

(With inputs from PTI)