How automakers ran into a commodity storm after the GST lift

For Indian automakers, a surge in sales after the September tax cut has been eclipsed by a new concern: soaring raw material costs.

- Ayaan Kartik

Pressure to hike prices could threaten a rebound after the GST cut and festive period bolstered demand to a record.

Many are contemplating price increases at the risk of suppressing demand.In their December quarter earnings calls, companies including the largest carmaker Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd, and two-wheeler manufacturers TVS Motor Co., Bajaj Auto Ltd, and electric scooter maker Ather Energy Ltd have flagged rising prices of key inputs such as steel, aluminium and copper. Combined with a depreciating rupee, higher prices are weighing on their profitability.