Steel, castings and forgings constitute almost 70 per cent of the material cost for a truck and the unending northward movement of steel prices has forced the company to pass on some of the cost, he added. It may be recalled that ALL managing director R Seshasayee had said in a press conference last month that any further hike in costs would be passed on to the consumers.
According to the company officials, efforts were made to hold onto the prices by improving productivity, better procurement and eliminating wastages. The auto component suppliers were also forced to share the burden through price reductions. But the unrelenting upward movement in steel prices has made it impossible to sustain the margins, forcing the company to jack up the prices, he added.
For the period April-October 2003, ALL has registered a 34 per cent growth in volume terms with a the total cumulative sales of 24,346 units against 18,150 vehicles sold in the same period last year. Of this, medium duty vehicles has the major stake selling 17,252 units, followed by medium duty passenger vehicles, selling 6746 units and LCVs selling 287 units.