Mahindra & Mahindra on Thursday clarified that it has no plans to increase vehicle prices from January 2026, unless a sharp rise in raw material costs forces an adjustment.

The statement comes as carmakers typically announce annual price hikes at the start of the year.

“We will not take price hikes right now, unless they are driven by a significant raw material price,” Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sectors), told reporters.

Responding to a query on possible January price hikes, Jejurikar emphasised that the company does not intend to undermine the government’s recent tax rationalisation.

“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.

He further added, “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.”

Following the GST Council's decision to rationalise tax slabs, carmakers have implemented price cuts effective September 22. The new structure lowered tax on most small and midsize cars from 28% to 18%, and reduced effective tax on large SUVs and luxury vehicles from around 50% to a flat 40%.