GM to hike car prices by mid-January

GM to hike car prices by mid-January

Kolkata: General Motors (India) is set to revise its car prices across models by mid-January 2011.

“We are reviewing the cost pressure, but there will be an increase in prices across models from the first week of January," GM (India) vice-president (Corporate Affairs) P. Balendran told the news agency on the sidelines of SIAM (Society of Indian Automobile Manufacturers) and CII oraganised Auto Show East.

“We typically increase prices between 1.5% and 3%," he said when asked about the expected hike in prices.

“There is a huge input cost pressure. Some component prices have increased between 5 and 15%," Balendran said.

GM India’s last price revision was done in June-July. GM had earmarked $500 million investment over the next 2-year to expand operations, launch new vehicles and ramp up dealership network all over the country.

“We have invested over $1 billion so far and we plan to invest another $500 million for our future expansion," GM India president and managing director Karl Slym had said recently.

The US-based automaker plans to launch six new vehicles in the country over the next 24-month, including, van, hatchback, small car and SUV categories.