Auto companies may face 10-12% price increase for half-yearly contracts

Auto executives confirmed that negotitations between steel companies and major automakers - Maruti Suzuki, Hyundai and Mahindra & Mahindra - are in final stages

Automakers — coming out of lockdown lows — are likely to face a 10-12 per cent price increase for half-yearly contracts with steel companies. After months of negotiations, some firms have sealed contracts, but most have decided to defer the increase to October.

Ranjan Dhar, chief marketing officer, AMNS India (ArcelorMittal Nippon Steel India), said the firm had settled half-yearly contracts with a few automobile companies. 

“We are seeing a demand recovery in auto which is better than expected. Demand for small car is pulling up, as people are opting for personal mobility,” Dhar said. However, it is understood that