Indian car makers hike prices for April, steel mills seek hefty rise for six-monthly supply contracts

Tuesday, 30 March 2021 11:16:50 (GMT+3)   |   Kolkata
       

Indian passenger car manufacturing majors have announced significant price increases effective from April this year, citing a rise in input costs and reports that steel producers are seeking sharp price increases in bi-annual supply contracts, SteelOrbis has learned from companies and industry circles on Tuesday, March 30.

Sources said that, while with the current fiscal year drawing to a close, bi-annual supply contract negotiations between passenger car makers and steel mills are ongoing, the latter have sought a price increase of around INR 9,000/mt ($124/mt) for six-month supplies of cold rolled coil (CRC).

Maruti Suzuki India Limited (MSIL), the country’s largest passenger car maker, has announced a price increase of up to INR 34,000/mt ($468/mt) for its range of products, citing an increase in input costs.

Toyota Kirloskar Motors Limited has also announced higher prices effective from April 1, to offset higher costs, claiming that, while the bulk of input cost increases would be absorbed by the company, part of it would be passed on to customers.

Renault India and Nissan Motors have likewise announced price hikes effective from April 1.


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