Indian Carmakers Buck Trend by Absorbing Commodity Costs

India's top carmakers are taking a proactive approach to absorb rising commodity costs rather than passing them on entirely to customers. Despite a sharp increase in steel, aluminium, copper, and rubber prices, companies like Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra (M&M) have chosen to prioritize production over quarterly profits.

According to executives at these firms, they have implemented cost controls, supported suppliers, taken calibrated price increases, and accelerated capacity expansion. This shift in strategy marks a departure from previous commodity cycles, when automakers relied more heavily on price hikes to protect margins.

Maruti Suzuki's executive director, Rahul Bharti, highlighted the company's strong demand across small cars, SUVs, and exports, with dealer inventory falling to just about 13 days. He emphasized that delivering cars to customers is their top priority.