Indian automakers consider hiking prices

Indian automakers consider hiking prices

Indian automakers expressed that their prices may increase due to rising steel prices. Moreover, the other reason is suppliers of automotive component are refusing to give steel at pre-agreed prices. In addition, Indian steel manufacturers recently have increased the prices of hot rolled coil by Rupees 4'000/ton ($88/ton) to around Rupees 27'000/ton ($596/ton). Industry analysts attributed this sharp rise to an increase in the prices of raw materials such as iron ore, coke and scrap. Under these conditions, automakers may take a decision to rise prices. India's Toyota Kirloskar Motor is planning to increase its prices, after formal budget is presented. The company has already soared its prices by 1% in January. However, Toyota expressed that the high steel prices in the country is a worrying factor. Toyota officials also stated that the recent free trade agreement with Thailand is a big opportunity for Indian auto components players. However, according to Chairman of the Association of Indian Automotive Manufacturers, Indian automotive industry has not been adversely affected yet by the impact of the rising price of steel. Chairman also expressed that the country's need for steel in the automotive sector was largely met from countries such as Japan and US.