Close on the heels of car, pipe and bicycle makers, two-wheeler companies like Hero Honda, Bajaj Auto, TVS Motor and Yamaha are seriously contemplating a hike in prices due to higher steel prices.

Officials from these companies told Business Standard that prices might be hiked as input costs, especially of steel, have increased over the past few months, pushing up the cost of production. Although the companies had not yet hiked the prices because of competition, they said a hike was expected soon.

A Bajaj Auto official said the prices might be increased by Rs 500-Rs 800 depending on the model.

"Of course, there has been a cost increase. We are still considering the exact amount and the timeframe but it should be between Rs 500 and Rs 800," the official said. India is the world's second-biggest two-wheeler market after China with an estimated sale of over 6.5 million units.

The market is dominated by Hero Honda, Bajaj Auto and TVS Motor Company.

An official of Hero Honda Motors, the biggest motorcycle maker, said the cost of production had increased due to the rise in steel prices but added that the company was implementing various cost-cutting measures to contain the pressure on costs.

The local subsidiary of Japan's Yamaha Motor Company also said it was following a wait-and-watch policy regarding a price hike.

"We are very much feeling the pinch as steel prices have gone up 8 to 9 times in the last three months," an official said.