Companies

GM may hike prices due to rising input costs

PTI Mumbai | Updated on March 07, 2011

The Indian arm of the American auto-major General Motors is likely to increase prices for the second time this year to offset the surging raw material costs.

“We may consider increasing prices again for the second time this year if the prices of raw materials continue to increase...the increasing input cost is now the biggest concern for auto makers,” the company Vice-President, Mr P. Balendran, told PTI here today.

“We will review the situation (cost of raw materials) by end-this month and will take a call by early next month,” he said.

GM India raised the prices across all models by two per cent in January this year.

“It is a matter of concern that input costs have kept increasing in the last few months. The prices of metals and rubber continue to increase, forcing auto makers to hike car prices,” Mr Balendran said.

The auto giant currently sells eight sub-brands in India under Chevrolet — Spark, Aveo UVA, Aveo, Optra, Tavera, Captiva, Cruze and the latest, the compact car Beat.

The Detroit-based company plans to launch its iconic Cadillac in the country soon. “We will launch our luxury brand, Cadillac, at the right time in India,” he said.

“Our Chevrolet brand is doing well. We will continue to grow in the country in the coming days,” he said.

Published on March 07, 2011

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