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Hike in steel prices will impact car prices to the consumers - Toyota Kirloskar

Steel News - Published on Mon, 11 Mar 2019

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ET reported that Toyota Kirloskar said that Indian steelmakers' decision to hike prices is likely to compound cost woes for Indian automakers already experiencing a spiraling of costs to prepare for the implementation of Bharat Stage VI emission norms on top of declining sales. Mr N Raja, Deputy MD of Toyota Kirloskar, said “We would like the raw material costs to be stable, which will allow us to maintain stable vehicle pricing to the end consumers. Any adverse price hike will likely impact end prices to the consumers.”

While auto companies are monitoring price contracts with steelmakers, any cost escalation beyond a level will make vehicles dearer for consumers, which may further impact demand. The auto industry reported a 5% overall fall in sales in January, and demand remained tepid in February even in an environment of heavy discounting by original equipment manufacturers.

ET report said “Indian steelmakers have decided to increase steel prices by at least INR 1,000 per tonne starting March with some having already implemented the price hike. Steel manufacturers had hiked prices twice in February by a total of INR 1,750 per tonne after prices started falling from end of November.”

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Posted By : Rabi Wangkhem on Mon, 11 Mar 2019
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