General Motors has decided to hike the prices of some of its models in India that have sizeable import content in them. Spark and Optra are expected to get costlier by at least 1-2 percent. Price of Chevrolet Spark may go up by Rs. 3000 while Optra may be get costlier by up to Rs. 10,000. There may be similar increase in price in Captiva as well.
General Motors had been offering exciting offers on all its cars until now and had also reduced its prices after the government announced calling off four percent CENVAT on automobiles. The company has not set its targets for the current year so far owing to the fluctuating market condition. It has already missed its target for 2008 of selling 75,000 cars units and had sold only 65,702 units which were 9.5 percent higher than 2007.
"Normally we fix targets in January, but this year we have not done so. Last year everyone said the market was likely to grow by at least 22 percent. Then it was scaled down," said P. Balendran, vice-president at General Motors India.
General Motors may also call off its special discount schemes on its various models which have been going on for quite some time now. The company intends to cover the input costs and the impact of weakening of Rupee against the dollar.