GM to hike car prices by up to Rs20,000 from 1 January
09 Dec 2014
General Motors will raise car prices in India by 1 per cent from 1 January to offset its input cost pressure, the company said in a release on Monday.
The Delhi-based Indian arm of GM will join Tata Motors and Mahindra & Mahindra, who raised their prices by 1-2 per cent last month.
"We have decided to increase the price of all car models to the tune of 1 per cent with effect from 1 January due to input cost pressure. The quantum of increase ranges between Rs5,000 and Rs20,000 depending upon the models and variants," said P Balendran, vice president, General Motors India.
Though raw material costs have remained mostly flat, wage costs and increased power tariffs have been the primary cause for costs going up.
General Motors, which sells cars through the Chevrolet brand, is raising prices at a time when discounts are at an all-time high. Discounts on all its products are more than 10 per cent.