New Delhi, May 11 -- Automakers are scrambling to contain surging raw material costs through measures ranging from cutting discounts and delaying discretionary spending to stockpiling supplies, as executives warn further price increases could derail demand that rebounded after last year's tax cuts.

Top two-wheeler and passenger vehicle makers said in recent earnings calls that they are trying to absorb a large part of commodity inflation rather than passing it entirely to consumers, amid concerns that repeated price hikes have already eroded some of the gains from last year's reduction in goods and services tax (GST) rates.

"GST rate cut really uncorked demand and now, with bike prices increasing, part of that reduction has got reversed...