98089 Investors following Tata Motors. Share this News with them.
0
Like this story, share it with millions of investors on M3
Auto industry feeling the heat of costlier steel
The automobile industry is feeling the heat of steep rise in steel price. While Tata Motors has hiked the prices of its commercial vehicles, Mahindra Renault has raised the price of its mid-size car, Logan. Other manufacturers may follow suit.
Though rising input cost is attributed as the reason behind the price hike, the company spokesperson declined to comment on how it will impact passenger cars and utility vehicles from the Tata Motors stable.
Mahindra's joint venture product with Renault, the mid-size car Logan, is going to be costlier by Rs 20,000 to Rs 30,000. "We are going to increase the price by around Rs 20, 000. This will vary from city to city. The price of petrol model of Logan has been increased from Rs 4.53 lakh to Rs 4.83 lakh ex-showroom Delhi," said Mr Nalin Mehta, Chief Operating Officer of Mahindra Renault. The company sold more than 3,000 units of Logan last month.
"We have to respond to the cost pressure and we feel that here is an opportunity to do that," Mr Mehta said.
The spokespersons of Maruti Suzuki, Hyundai Motor India Ltd and Honda Siel Cars India said the companies were not planning any increase in the prices of their cars now.
