Car manufacturers, auto component makers struggling with rising steel prices

Vehicle manufacturers in India are currently under pressure from vendors, who want to raise component prices to offset the relentless increase in steel prices. If component vendors do increase prices, vehicle manufacturers may also be forced to increase prices, with the consumer having to end up bearing the brunt of it all.

Steel producers did announce a price cut last week, but it wasn’t for the alloys of steel used by automotive components manufacturers. ‘The alloy steel has not been impacted by the price cuts at all, leaving the industry sandwiched between fixed-price supply contracts on one hand and the rising prices of steel on the other, which has severely impacted on the profitability of the industry,’ says Sanjay Labroo, president, ACMA.

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