“High commodities prices obviously put pressure on profitability. Therefore, we are closely watching the situation and will take action accordingly. We have to walk the fine line between top-line and bottom-line,” Shashank Srivastava, senior executive director of Maruti Suzuki India told ETAuto. Luxury carmakers and Tata Motors’ CV segment have already announced price hikes over the last two months.
It is expected that others will also follow the market leader. “Looking at the current situation of commodity prices, the price increase is certainly on the cards,” Veejay Nakra, CEO at Mahindra & Mahindra, automotive sector, said.
For carmakers, raw material is almost 75-78% of the cost, which has seen steady rise over the last few months, and with the recent geopolitical situation, it continues to be uncertain.
Key commodity prices of steel, plastics, aluminium, copper, rhodium, platinum, etc, have been stubbornly high since 2020.
