Country's largest two-wheeler maker Hero Honda on Tuesday virtually ruled out cutting prices, saying it was unlikely that such a step would spur demand.
Reacting to Finance Miniter P Chidambaram's call to various industries to lower prices to stimulate consumption, Hero Honda Motors Chairman Brij Mohan Lall Munjal said, "Price cuts are unlikely to spur deamand.
"Minimum wages are increasing, fuel price has increased and electricity prices have also increased, so how do we bring down the prices of our products?"
Munjal was speaking to reporters on the sidelines of the India Economic Summit in New Delhi.
Expressing similar sentiment, Volkswagen India Managing Director K K Swami said, "Price reduction can happen only when there is a reduction in the input cost."
Globally, commodity prices have gone down but it has not been reflected in the input cost and most of the auto makers have long-term contracts to procure component from suppliers.