Mahindra will avoid January price hikes unless raw material costs rise significantly
Mahindra has indicated that it will not raise vehicle prices in January 2026, diverging from the auto industry’s long-standing trend of annual New Year price hikes. The company says any future revisions will be linked directly to changes in input costs rather than routine industry practice.
Price Stability Linked to GST Cuts
Rajesh Jejurikar, Executive Director and CEO of M&M’s Auto and Farm divisions, said the company intends to keep prices stable following the government’s recent GST rate reductions. Mahindra believes that increasing prices soon after a major tax revision would go against the intent of the reform, which aims to make vehicles more accessible.
He added that Mahindra does not want to be seen as raising prices merely because it is customary for the industry at the start of each year. Any hike, he said, would need to be justified by a clear increase in raw material costs.
Industry Already Adjusted Prices Post-GST Reform
Automakers across India have already reduced prices since September 22, when GST rationalisation was implemented. The revised tax structure shifted most small and mid-size cars into an 18 percent GST bracket, down from 28 percent, while the GST on larger SUVs and luxury vehicles has fallen from roughly 50 percent to 40 percent. These reductions have led to revised retail prices across several brands and models.
Mahindra’s Position Going Forward
Mahindra’s stance suggests a cautious approach to any future price movement. The company will monitor raw material trends but has no plans to follow any automatic January adjustment. This could create a contrast within the industry if other manufacturers decide to proceed with routine price increases.
