The Indian unit of the US based leading car maker General Motors is expected to hike the price of its car models in the Indian market for the second time in the current year as the price of raw material is continuously shooting upwards.
In a statement given to PTI on Monday, General Motors India Vice-President P Balendran said, "We may consider increasing prices again for the second time this year if prices of raw materials continue to increase...the increasing input cost is now the biggest concern for auto makers." He added, "We will review the situation (cost of raw materials) by this month-end and will take a call by early next month."
It is to be mentioned here that the company had increased the price of its cars in the Indian market in January 2011 by up to 2 percent. While further elaborating the expected price hike, Mr. Balendran said, "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."
The company currently sells some 8 car models in the Indian market including Chevrolet Spark, Beat, Aveo UVA, Aveo, Optra, Tavera, Captiva and Cruze.
