The rising steel prices have put a lot of pressure on car manufacturers to raise car prices. The cost of steel has increased by 3.5 percent. The prices have risen despite of efforts by the union government and steel manufacturers.

The added cost of steel will increase inputs cost which will have a cascading effect on the entire cost of the car. Mahindra Renault has already increased prices of Logan, and Tata has upped prices on its entire range of commercial vehicles. So far, the small car segment remains untouched by the hike in steel prices.

Maruti Suzuki and Hyundai have postponed their decision to hike prices of cars. Tata has decided to weather the crisis and has retained the same prices for its passenger cars. However, the rising inputs cost could force the car manufacturers to crack and increase prices on their products.

So all those who have been waiting to get a new car, now is the time to have one.