Maruti Suzuki keeping eye on rising input costs

Increasing commodity prices, specially those of rhodium and palladium, which are used in catalysers to meet strict emission norms, are putting cost pressure on automobile makers, according to a senior official of Maruti Suzuki India.

The company, which had hiked prices of its vehicles in January, however is not planning to pass on the burden to consumers in the near future although it is keeping a close eye on its cost structure.

With the supply of semiconductors becoming a challenge for the automotive industry, Maruti Suzuki is also watching the situation closely although it will have normal supply this month.

"In commodities, prices have gone up dramatically this year, especially that of steel, and rhodium and palladium, which are used in catalysers of BS-VI vehicles.

"Demand across the world has gone up but its mining happens only in Russia and South Africa. There, the mining was much lesser because of the pandemic," Maruti Suzuki India Executive Director (Marketing & Sales) Shashank Srivastava told PTI.

Supply was less and global demand is very high because all Euro VI, BS-VI and China VI vehicles require catalysers, he said adding, "so, the demand has gone up, whereas supply is constant.”