Rising Steel Prices May Force Hino and Isuzu to Increase Vehicle Prices

Owing to the rising raw material costs, Japanese heavy truck manufacturer, Hino Motors, and Isuzu Motors, the light-duty truck maker, may possibly increase domestic vehicle prices, Bloomberg has reported.

It is reported that steel prices have increased following a surge in demand from emerging markets and may result in what could be termed as the first steel shortage in decades the world over.

According to the Nikkei business daily, Hino and Mitsubishi Fuso Truck and Bus will increase the prices of trucks by 3% to 5% in 2008.

“We can’t fully absorb surging raw material costs even though we are making efforts,” Yoshihiro Udagawa, a Hino spokesman, was quoted as saying. Isuzu’s spokesperson, Naoki Ariizumi, also maintained that the company may pass on higher costs to its domestic customers.