Automakers Brace for Price Hikes Amid Soaring Commodity Costs

Tata Motors Passenger Vehicles Ltd plans to increase vehicle prices in response to rising commodity costs, as confirmed by CEO Shailesh Chandra. Maruti Suzuki India and Hyundai Motor India are also reviewing price hikes. Precious metal prices are affecting the auto industry's financial strategies.

Tata Motors Passenger Vehicles Ltd (TMPVL) is set to increase its vehicle prices in the upcoming weeks due to mounting commodity prices, according to CEO Shailesh Chandra. This adjustment comes amidst industry-wide scrutiny over cost management strategies.

While Maruti Suzuki India is evaluating the potential for similar price hikes, Hyundai Motor India has already executed a January price rise specifically for its Venue model. The common challenge here is the ongoing price surge of precious metals such as copper.

Chandra noted in a quarterly earnings call that commodity costs are impacting TMPVL's revenues by over 2 percent. Although details on the extent of the price rise remain undisclosed, the auto industry is clearly feeling the pressure of volatile commodity markets.

(With inputs from agencies.)