In a bid to counter the rising cost of commodities, the automobile industry in India is reportedly mulling over bringing about an increase in the price of cars in the country.
Essential commodities such as aluminium, copper and steel are becoming costlier by day, making auto-makers consider a price hike during the festive season, reported Economic Times. While the move would impact the sales figures, it is said that the makers are left with no choice.
"With major raw material prices going north, there is a challenge to maintain current price points," Rakesh Srivastava, Senior Vice-President (sales and marketing), Hyundai Motor India, said.
Steel prices have gone up 36 percent in the past six months while the cost of aluminium and copper has also increased. The rising cost of the raw materials, coupled with the value-fluctuation of yen in the international markets, is also expected to take a toll on the Japanese companies.
'We have been absorbing all the additional costs but if the trend continues we will have to pass on a part of this cost to our customers," N Raja, Director and Senior VP - marketing & sales, Toyota Kirloskar Motor, said.
While a majority of the auto-makers increased the prices of their models after the announcement of the infrastructure cess, some firms like Honda Cars India and Volvo Eicher Commercial Vehicles further increased the prices last month.