Steel prices soar, forcing automakers to hike car costs
Car prices in India are going up, and steel is the main culprit—a 6% jump in steel costs this quarter has pushed automakers to hike prices.
The spike comes from tariffs and general market conditions affecting prices.
While companies aren't feeling a huge pinch yet, ongoing raw material inflation could make things tighter soon.
Steel and precious metal prices are affecting margins
Steel is essential for building cars, so rising costs hit hard.
Brands like Mahindra & Mahindra have managed to balance things out with early price hikes, but they're keeping an eye on further inflation.
Precious metals getting pricier isn't helping either.
For now, margins are holding steady thanks to those quick adjustments.
SUVs saw a rare 2% sales dip in June
SUVs usually drive car sales in India, but June 2025 saw a rare 2% drop—the first monthly fall in over five years.
Higher car prices and job worries (especially IT layoffs) have made buyers pause, making it trickier for automakers to set the right price without losing customers.