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Reuters reports: “
Rising input costs drive four auto firms to bump up prices
Four automobile firms — Tata Motors, Mahindra & Mahindra (M&M), Isuzu Motors India and BMW Group India — on Monday announced an increase in prices of their products, passing on rising input costs to consumers.
Industry analysts attributed this is to the sharp rise in prices of commodities that go into the manufacture of automobiles.
“All input costs have gone up substantially. Be it steel, rubber [or] copper, all commodity prices have go up,” said Jinesh Gandhi, auto analyst, Motilal Oswal Financial Services.
“The magnitude of the price hike is such that the auto companies do not have the capacity to absorb even half of it,” he added.
The farm equipment sector of Mahindra & Mahindra said it would raise prices for its tractors across models effective January 1, citing the rise in commodity prices.