Car makers may not raise prices

CHENNAI, OCT 7: Despite a possible 10 to 15 per cent increase in production costs consequent to the hike in diesel prices, car manufacturers are unlikely to effect any immediate increase in prices. The competitive situation that is prevailing in the market is forcing them to look at ways and means to absorb this cost push before taking any decision of passing on the cost to the customers.

The hike in diesel cost is likely to have an inflationary impact on the car manufacturers, says AP Gandhi, president, Hyundai Motors India Ltd HMIL. Forty per cent is abnormally an high increase and would have a cascading effect.

He said HMIL would study the impact on the cost before deciding whether to absorb it or pass it on. He, however, said the players in the industry are offering the best possible price.