Our World

  Some of the biggest names in the auto industry have already had to modify their car production targets due to the global chip shortage and many are making plans to cope with the situation as the semiconductor crisis threatens to worsen in the coming months. But according to a report, one of the top automotive manufacturing companies in India, Tata Motors is more concerned about something else than the chip issue. The company, which is India’s third-largest carmaker, is more worried about the rising cost of raw materials. As reported by Bloomberg Quint, PB Balaji, who is the chief financial officer at Tata Motors Group, said: “It [raw material cost] is becoming very, very painful. Prices right now are moving so fast that we are not able to process it.” According to Balaji, vehicle costs have increased by 14 per cent in the last year across all categories due to engine upgrades to meet lower emission standards (BS-VI or Bharat Stage VI), while another 6-7 per cent increase in price