India’s stalling car sales face commodity price pressure

India’s largest carmaker Maruti Suzuki is reportedly keeping a close watch on rising global commodity prices and the pass-through effect they will have on local vehicle prices and ultimately sales.

Press Trust of India reports that material costs usually comprise 70-75% of an auto’s total cost in India, but during the second quarter the percentage had hit an unprecedented 80.5%.

The carmaker has raised prices three times this year, but senior executive director for marketing and sales Shashank Srivastava claims Maruti Suzuki has not “passed on even the past increases of commodity prices into our (vehicle) price hikes.”

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