Mahindra and Mahindra (M&M), country’s largest utility vehicle manufacturer, has decided that it would be raising the price of the recently launched premium SUV – XUV5OO by Rs 30,000-55,000 from next month. “This price rise was necessary as the launch price was an introductory invitation price and there has also been a considerable impact of increase in raw material costs and the rupee depreciation with respect to dollar and euro,” the company said in a statement on Wednesday.

Financial Chronicle earlier this month had reported the price of XUV500 would go up by Rs 20,000-40,000. M&M had announced 2-3 per cent price hike across the range of vehicles effective from January 1, 2012 on December 15. XUV500, which is available in three variant W6, W8-FWD and W8-AWD will be dearer by Rs 30,000, Rs 50,000 and Rs 55,000, ex-showroom Delhi, respectively.

However, for all the current bookings, for which delivery has not been made and inspite 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 as above.

M&M had received 8,000 bookings soon after its launch in September this year and had to stop taking bookings from October 12.

The production for the XUV5OO is as per schedule and the company is also in the process of further ramping up production at its plant in Chakan which will enable it to re-open bookings in January next year.

rupeshjanve@mydigitalfc.com