Mumbai: Amid reports that high steel prices are eating into profits margins of vehicle makers, Bajaj Auto chairman Rahul Bajaj said he preferred market forces to the government to determine prices of the alloy.

“I don’t want government intervention even though I [Bajaj Auto] consume steel ... I don’t want Mr. Ram Vilas Paswan or Mr. Chidamabaram to determine steel prices,” Mr. Bajaj told journalists on the sidelines of a programme here.

Steel prices have risen up to 49 per cent in the last 12 months and have been a major cause for pushing inflation to over 7 per cent.

On alleged cartelisation among steel producers, he said: “I don’t have any proof of cartelisation. However, market forces will determine prices till there is a shortage.”

Mr. Bajaj, a Rajya Sabha member, admitted that high prices of steel and aluminium had “solidly impacted” the auto industry. — PTI