The US based auto giant, General Motors, stated that it will increase its car prices by 2-3 percent in January. It will also withdraw the discount offers on its cars next month. "We have been offering a discount scheme on our models for an extended period from October. We can no longer take a hit on our bottomline and hence we have decided to effect an upward revision in the prices of our car models. The prices will be increased on all our models from January," said P Balendran, Director and Vice President (Corporate Affairs), General Motors.
General Motors had been offering huge discounts on all its models since October 2008. The company has recently launched its Chevrolet U-VA in Bangalore recently to introduce its model in South India. GM had been offering discounts ranging from Rs. 20000 to 58,000 on its different models. It had also been offering further discounts of Rs. 3000 to Rs 5000 to the State and central government employees. All discounts will be withdrawn from January 2009.
GM has sold 65000 units from January to November marking a growth of 8.2 percent compared to last year’s sales figures during the same period. It hopes to clock 20 percent growth by end of 2008 by selling 72000 – 75000 units across India.