Car prices in India are set to rise again from next month as the major car manufacturers plan to pass on the higher costs of raw materials such as steel and copper to customers.
In the last two months, most steel companies such as SAIL, Tata Steel, JSW Steel and Essar Steel have hiked prices by about Rs 2,000 a tonne, citing a surge in iron ore and coking coal prices.
Tata Motors today said it would hike the prices of its cars by up to Rs 36,000 from April 1, while rivals Maruti Suzuki India and Hyundai are also mulling a similar move to offset rising input costs.
On Monday, Honda Siel Cars India had said it would raise its prices by 2-3 per cent from April. Other car makers, including General Motors, Ford, Toyota and M&M, said they were planning a price hike but would take a call by the end of this month. Prices of other key commodities also rose sharply between June and February, including copper (26 per cent), lead (38 per cent), and rubber (27 per cent).
“There is pressure on our bottomline because of the rising input costs,” said Maruti managing executive officer (marketing & sales) Mayank Pareek.
A Hyundai Motor India Limited (HMIL) spokesperson said: “We are also considering a price hike but we have not finalised anything yet.”
Ford India president and managing director Michael Boneham recently said, “Surging raw material costs are worrying us and it is now the biggest concern for almost all auto majors in the country.”