West Asia conflict forces higher input costs for Indian carmakers
Business
The ongoing conflict in West Asia is making it costlier for carmakers in India to get the materials they need.
Since last year, prices for essentials like steel and plastics have shot up: steel alone is now 10% pricier, and stainless steel costs 16% more than before.
Materials surge squeezes Indian automakers profits
These rising material costs are squeezing profits for auto companies all along the supply chain.
Metals like aluminum and copper are up by nearly 30%, while some plastics have jumped even higher. Precious metals used to control emissions, like platinum and rhodium, have more than doubled in price.
Gaurav Vangaal from S&P Global Mobility warns that with the rupee also weakening, car prices might go up soon if things don't settle down.