Rising raw material and depreciating rupee may increase prices

Citing rising raw material costs due to the depreciating rupee, two-wheeler major Bajaj Auto today indicated that it may increase prices of its products.

"Definitely we are seeing a pressure on raw materials, because raw materials are usually corrected to the dollar rate. Some cost increases or price increases may be around the corner," Bajaj Auto President, Motorcycle business, K Srinivas told reporters here.

The company had effected a price increase early this year, mentioning high input costs. Srinivas said the motorcycle industry is already highly "localised" and that any imports by companies are partly due to cost advantage. "The day cost advantage vanishes, we will stop importing such stuff", he said after unveiling the 125cc Discover ST, a more expensive model than the last one. Also Read: Bajaj Pulsar 200NS Launched