MUMBAI: Mahindra & Mahindra Ltd has signaled an increase in the prices of its vehicles in the next few months due to rising prices of various raw materials. According to the report, Mahindra has recently cut jobs in its North American operations and may continue to do so. As Mahindra prepares to launch its off-road vehicle Roxar.
Rajesh Jejurikar, Executive Director, Automotive & Farm Sector, Mahindra & Mahindra, said, “We are raising prices in January and we will take action once again in the first quarter of next year until everything is under control.” “We strive to reduce this kind of growth by managing material costs and value engineering and fixed costs,” he added. Mahindra last month announced a 1.9 per cent rise in prices of personal and commercial vehicles with immediate effect.
Commenting on the job cuts in the North American operation, he said the manpower was not associated with the tractor business but primarily with the Product Development Center in Detroit. The layoffs were made because the company decided not to bid for an agreement with the U.S. Postal Services.
He said the team would not do the development work that was at the concept stage. It has nothing to do with the tractor business. “We have recently received approval for a new Roxar model,” Jejurikar said of the possibility of further job cuts at the North American unit ahead of the launch of the off-roader Roxar. We are working on a relaunch approach.