Cost to automakers is set to go up with steel companies pressing for an increase in contract prices after about three quarters. But, it remains to be seen if the automakers pass on this hike to customers. Most carmakers have already announced a hike in prices which will come into effect from April.
Steel accounts for about eight per cent of the raw material cost for cars and utility vehicles, seven per cent in two wheelers and nine per cent in commercial vehicles.
Major steel companies – Tata Steel, JSW Steel and ArcelorMittal Nippon Steel India (AM/NS India) – have initiated discussions with auto original equipment manufacturers (OEMs) for the April to June contract in the backdrop of firming up of steel prices.
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