Mahindra XUV500 to cost higher by up to Rs 55000

mahindra xuv500Mahindra XU500 SUV cost to increase from January 1

Mahindra and Mahindra have announced that it will hike XUV500 price by at least Rs 30000 from January 1 due to higher raw material costs and the rupee fall.

“The price rise has been necessitated as the launch price was an invitation price and there has also been a considerable impact of increase in raw material costs and the rupee depreciation with respect to the dollar and the euro,” said by the company.

“However, as a special case, for all the current bookings, for which delivery has not been made and in spite of the terms of price applicable at the time of delivery, the increase would only be 50 per cent of the actual price increase proposed, the company said.

Mahindra XUV500 will witness a price increase for the base model by Rs 30000, the four-wheel drive variant will cost as much as Rs 50000 more and the higher W8-AWD model will be increased by Rs 55000 (all ex-showroom, Delhi).

The company launched on the September 29 and booking began on October 1 and within few days the company closed the bookings on October 10 due to high demand and still it has backlog of over 8000 units. It is expected that Mahindra XUV500 bookings to be reopened during January 2012.

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