TL;DR
Indian auto and component manufacturers face profit margin squeeze due to rising input costs of aluminum, copper, and platinum group metals, despite softer steel and rubber prices.
The Indian automotive and component manufacturing sectors are facing renewed pressure on profit margins due to a significant increase in input costs. A surge in the prices of key raw materials such as aluminum, copper, and platinum group metals is largely offsetting the softening in steel and rubber prices.
This rise in material costs presents fresh margin risks for automakers and suppliers, especially in an environment where pricing power remains weak. Industry analysts highlight that these inflationary pressures could impact financial performance across the board, prompting companies to explore cost-optimization strategies and potentially adjust vehicle prices in the coming months.
