Auto industries are in trouble due to expensive raw materials… prices of cars may increase.

New Delhi. Automobile companies are facing a major cost crisis. There has been a sharp rise in the prices of essential raw materials like steel, metal and plastic since March 2026. This will affect the profits of companies and may also reduce the demand for vehicles. This information has come out in the latest data of Society of Indian Automobile Manufacturers (SIAM).

Direct impact of war in West Asia

According to a news, steel prices have increased due to war in West Asia. In March 2026, the price of steel increased by about 10 percent to Rs 60,000 per tonne. At the same time, stainless steel became expensive by 16 percent and crossed Rs 2 lakh per ton, due to which the cost of body and other parts of vehicles increased.

From coking coal to precious metals, everything became expensive

The price of coking coal, used in steel making, saw a jump of 31 percent. The prices of aluminum (27 percent) and copper (28 percent) have increased by almost one-third. The prices of plastics used in vehicle interiors and parts have increased even more rapidly. Thermoplastics like polypropylene became costlier by 34 per cent to Rs 136.2 per kg (from Rs 102 last year), while polycarbonate rose by 9 per cent to Rs 227 per kg.

Inflation of precious metals will weigh heavily on emission control

There has also been a rise in the prices of precious metals used in pollution control systems in vehicles. Platinum rose by 124 per cent to Rs 6,196 per gram, rhodium by 121 per cent to over Rs 33,000 per gram and palladium by 74 per cent to Rs 4,712 per gram. Due to this, the cost of emission control devices installed in cars has increased significantly.

Difficulty will increase due to weakness of rupee

According to experts, at present the immediate effect of this price increase will not be visible on demand, but if this pressure continues for a long time then people may delay in buying a car. Gaurav Bangar of S&P Global Mobility said rising prices of metals, polymers and precious metals are squeezing carmakers’ profits. The weak rupee has further increased the problem, due to which companies will have to increase the prices of vehicles to save their margins.

Steel accounts for 50 to 60 percent of the total input cost.

Industry experts say that its impact on the value chain is clearly visible. Steel alone accounts for 50 to 60 percent of the total input cost of a vehicle. “This pressure is very real and companies are bearing the brunt of it,” a businessman told TOI.