{
  "id": 14774298,
  "title": "Auto cos face cost squeeze as input prices surge",
  "url": "https://urgent.news/2026/10/15/auto-cos-face-cost-squeeze-as-input-prices-surge",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-15T16:14:49.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/auto/auto-news/indian-auto-industry-on-edge-steel-and-freight-price-surges-prompt-more-price-hikes-ahead/articleshow/134971707.cms"
  },
  "original_language": "en",
  "account": "The Indian automotive sector, which experienced a sales boost post GST reset, now confronts mounting pressure from escalating input and freight costs, compounded by geopolitical tensions. This has led to additional price increases following the festive period. Steel prices have witnessed a 30% year-on-year surge, reaching their 12-month peak between Rs 65,000 and Rs 66,750 per tonne in September. Similarly, CR steel prices have climbed by 28% from Rs 56,000 to Rs 73,375 per tonne. Aluminium prices have also risen by 23% to $3,276.80 per tonne. The automobile industry constitutes 9% of the HR steel market and 21% of the aluminium market in India. Other commodities like coking coal, copper, zinc, polypropylene, EPDM, and CNG have also seen price surges.\n\nDelhi witnessed a 13% rise in CNG prices compared to last year, while Mumbai experienced a 9% increase. The shipping freight index (Baltic Dry Index) has surged by 60%, reaching 3,408 points in September 2026, compared to 2,124 points in the same month of 2025. This has significantly heightened logistics costs. Major automobile manufacturers including Maruti Suzuki, Mercedes Benz, Hyundai Motor India, Tata Motors, and Toyota Kirloskar Motor (TKM) have already rolled out multiple price hikes this year. They remain vigilant for potential further adjustments post the festive season if inflationary pressures continue.\n\nSenior executives from Maruti Suzuki and TKM expressed their concerns over volatile raw material prices and the need for continuous monitoring of their impact on manufacturing costs. While Maruti Suzuki has not planned additional hikes during the festive season, they are willing to implement calibrated price adjustments to meet customer expectations. TKM, on the other hand, is closely monitoring commodity price fluctuations. Premium brands like Mercedes Benz India have also faced rising shipping and raw material costs due to adverse forex movements. Despite implementing three price adjustments this year, the company aimed to preserve customer sentiment through lower EMI offers. Industry stakeholders anticipate a moderate growth rate in car sales between October and March FY27, with overall sales expected to rise by around 10% to over 4.64 million units in the current fiscal year.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}