Rising commodity prices put pressure on carmakers' margins

Companies offset 8-10% rise in raw material costs by raising prices by 2-4% and lowering discounts

Increase in the prices of key commodities has forced car manufacturers in the country to hike vehicle prices, apart from lowering discounts.

In January, major players such as Tata Motors, Maruti Suzuki India, Hyundai Motors India and Toyota had announced price hikes, followed by Ford, Volvo and Honda Cars saying that they are considering price hikes in April. Honda, however, is yet to raise prices and a spokesperson said that the decision is still under consideration.

The price rises are in the range of 2-4 per cent mostly. Commodity prices, on the other hand, especially those of key