Mahindra to hike prices by up to 2 per cent from January

Mahindra & Mahindra has said it will increase prices of its passenger and commercial vehicles by up to 2 per cent from next month to offset high input costs.

"This increase would be effective January 1, 2014. The price increase is primarily due to rising materials, input and higher freight costs," the auto major said in a statement on Thursday.

The company sells a range of vehicles from three-wheelers to high-end SUVs.

"We have been holding back prices for a while, but now it has become necessary to raise them to partly compensate the increase in materials, input and freight costs," said Pravin Shah, chief executive of the automotive division at Mahindra.

On Wednesday, French auto major Renault announced it would increase vehicle prices in India from next month to offset higher costs. The company's wholly-owned unit Renault India sells five models in India - including SUV Duster and compact car Pulse.

Earlier, Nissan said prices of its vehicles, including hatchback Micra and SUV Terrano in India, would be hiked by up to 4 per cent from next month.

Tata Motors, Maruti Suzuki India and Hyundai have also announced price increases from January, joining Mercedes, BMW, Audi and Honda.