High steel prices hit cost and profit: Kant

New Delhi, Apr 9 (UNI) Expressing concern over the rising steel prices, Tata Motors Managing Director Ravi Kant today said it is a cause of major problem in the auto industry's cost and profit structure.

''Due to rising prices, there will be inflation. Steel prices have been rising for the last three years,which has been adjusted by cutting profitability, However, the rise in prices in the last three months is a cause of worry and a problem for the auto industry's cost and profitability,'' said Mr Kant.

The auto industry has been unanimous in its concerns over rising input prices in the form of high commodity prices.

Prices of not only steel, but aluminium and copper are also rising and hurting the automobile industry. While some has resorted to cutting cost of production, some manufacturers are weighing the option of a price hike.

Mr Kant met Finance Minister P Chidambaram yesterday to express his concern over high input cost and the adverse impact of such a secular rise in prices.

''The Finance Minister was very concerned and sympathetic towards the issue,'' Mr Kant said.

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