General Motors is planning to hike prices of its cars in India. The new prices will be announced in the first week January and will be in the range of 1.5 -3 percent depending upon various models. GM India had last revised its prices in June-July 2010. “We are reviewing the cost pressure, but there will be an increase in car prices across models from the first week of January," said GM (India) Vice-President (Corporate Affairs) P Balendran on the sidelines of SIAM (Society of Indian Automobile Manufacturers) and CII organised Auto Show East. "There has been constant rise in input costs including steel and rubber. Some component prices have increased between 5 and 15 per cent," he said.
General Motors India has also planned to launch six new car models in India in next two years and invest $500 million to tap demand in one of the world's fastest growing car markets. It will also increase its dealer network in India to 240 by the end of this year from 211 now. “Indian automobile industry has recorded a 26 percent growth during the last financial year. To cash in on this boom, we will introduce six new models by 2012 and expand our presence by increasing the number of sales points,” said Balendran.
