Mumbai: Surging input prices are likely to push up costs for car makers, forcing them to raise prices in the coming days.
While companies like Toyota, Ford and Fiat are mulling a price-increase if commodity prices continue to rise at the current rate, auto major General Motors India has already decided to increase its prices by 2-3% from next months onwards.
Overall, commodity prices have gone up by 25% in recent days.
“We will be increasing prices across all eight models by 2-3% from July first week to offset rising input costs,” General Motors India’s vice president P Balendran, told PTI here.
“Prices of commodities like steel and rubber have risen sharply since the second quarter of last year. So, we have been forced to increase prices this time,” Balendran said.
Car-makers have already hiked their prices thrice – first in January due to rise in input costs, second following a 2% excise duty hike in the Union Budget and third after the introduction of new emission norms.
“We are reviewing the situation this time and will take a call by this month-end. Commodity prices has gone up sharply in recent days,” Toyota Kirloskar Motor’s deputy managing director (marketing), Sandeep Singh, said.