Indian Carmakers Absorb Cost Surge, Raise Prices by Up to 2.7% to Keep Output Flowing
Updated
Updated · The Economic Times · Aug 2
Indian Carmakers Absorb Cost Surge, Raise Prices by Up to 2.7% to Keep Output Flowing
1 articles · Updated · The Economic Times · Aug 2
Summary
Maruti Suzuki, Hyundai Motor India and Mahindra & Mahindra said they tightened costs, supported suppliers and used limited price hikes to keep production running despite higher steel, aluminium, copper and rubber costs.
Strong order books drove that shift: Maruti said dealer inventory fell to about 13 days, demand stayed firm across small cars, SUVs and exports, and output is rising from two newly commissioned plants.
Margins still weakened in the June quarter. Maruti posted 36% revenue growth, but operating EBITDA fell 6.7% and operating EBIT dropped 17.4% year on year as commodity inflation and currency moves bit.
To ease pressure, Maruti moved aluminium settlement cycles with suppliers from quarterly to monthly, while also lifting prices by 50 basis points in June and announcing another increase from August.
Mahindra took a 2.7% average price hike in July after a 1.5% rise, saying a one-time revision had not meaningfully hurt demand, underscoring how automakers now favor volume and delivery over short-term margins.