Automakers Plan Calibrated Price Increases Amid Rising Commodity Costs

Synopsis

Automakers anticipate implementing calibrated price increases in upcoming months. High commodity costs are exerting pressure on manufacturer profit margins. The auto industry is preparing for a greater push towards electrification of mobility. A multi-fuel pathway including diesel and hydrogen is also highlighted. Pricing actions will be undertaken wisely to avoid market disruption.

New Delhi: Automakers are likely to implement more price hikes for vehicles in a calibrated manner in the coming months as high commodity costs exert pressure on margins, Ashok Leyland MD and CEO Shenu Agarwal said on Thursday.

He also highlighted the need for a multi-fuel pathway, including diesel, gaseous fuels, electrification and hydrogen, asserting that the auto industry is preparing for a greater push towards electrification of mobility.

"Pricing action would happen more as we go along. However, you know that there is a limit to what customers will accept or the market will accept. Of course, you don't want to dent the momentum because momentum gets created with a lot of power and forces, and you don't want to mess up with those. Therefore, it will be done very wisely," he told reporters here.