The country's leading car makers, Maruti Udyog and Hyundai Motor India, are planning to raise prices in view of spiralling steel prices, according to top officials of these companies.
Maruti Managing Director Jagdish Khattar said the car maker was under heavy cost pressure because of the increase in steel prices.
"There does not seem much of a scope for the reduction of steel prices," Khattar said.
According to Khattar, the cost of producing a Maruti 800 has gone up by Rs 8,160 due to high steel prices.
"The price of steel was increased from Rs 13-14 per kg to Rs 21 per kg," Khattar said.
Hyundai Motor India President BVR Subbu also said the company was seriously considering hiking the price tags of its vehicles from next month.
"The production cost of the Santro has alone gone up by Rs 6,000," Subbu said.
The statements by Maruti and Hyundai come close on the heels of an announcement by Mahindra and Mahindra to raise the prices of all its utility vehicles by Rs 4,000-6,500.