Shares of sports utility vehicle and tractor maker – Mahindra & Mahindra – rose as much as 3.8 per cent to hit an intraday high of Rs 745.55 on the BSE a day after the company announced its plan to increase prices of passenger and commercial vehicles across models with effect from January 1, 2021. The Mumbai-based auto maker said that the move has been necessitated due to the increase in commodity prices and various other input costs. The quantum of price increases across different models will be communicated in due course, Mahindra & Mahindra added.
In a separate development, Mahindra & Mahindra’s South Korean unit Ssangyong Motor Co has defaulted on loan repayment of about 60 billion won ($55 million), the company said in a statement to the stock exchange on Tuesday.
Of the total payment that was due on December 14, about 30 billion won was owed to Bank of America, 20 billion won to JP Morgan Chase and 10 billion won to BNP Paribas, Mahindra said.
Meanwhile, in today’s session, Mahindra & Mahindra shares were witnessing higher than usual volumes as 3.69 lakh shares changed hands on the BSE compared with an average of 2.17 lakh shares traded daily in the past two weeks.
As of 11:56 am, Mahindra & Mahindra shares traded 2.55 per cent higher at Rs 736.60, outperforming the Sensex which was up 0.57 per cent.