New Delhi, Apr 27 (UNI) Country's largest car maker, Maruti Suzuki India Ltd, said it will increase prices of its cars from first week of May.
''Raw material cost are going up. We are doing our our best to absorb the hike in prices of raw material by increasing productivity, but we may have to increase prices of cars soon,'' said company Managing Director Shinzo Nakanishi.
Steel contracts for the car maker comes up for renewal next month and company CEO (Sales and Marketing) Mayank Parekh said the Steel companies are calling for a hike of almost 40 per cent in prices.
Maruti has 60 per cent of its Steel contracts from within the country with players like Tata Steel providing a major chunk of its steel needs. The remaining 40 per cent of the steel needs is imported from companies like Posco.
Mr Pareekh said the last time the company renewed its contract for steel in October, the price rise in steel had been marginal.
''This time the rise in prices have been greater and far more substantial,'' Mr Parekh said.
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