To combat the credit crisis, General Motors India has announced to hike its car prices by 1-2 percent from January 10th.
Mr. P Balendran, Vice President of General Motors India said,"There is pressure due to the currency fluctuations and rising input costs. From January 10, we will hike prices across all models by 1-2%.”
He further added, “Yearly targets are fixed in January every year. However, the norm was broken this year considering the sluggish market conditions. Last year the auto market expected a growth of 22 percent, but saw a dip again”.
It is believed that the price rise will cover input costs and will also reduce the impact of weakening rupee value. Due to the bad market condition, General Motors failed to reach its sales target of 75,000 units in 2008.
With the price hike, models like Spark will carry a additional cost of Rs 3,000, whereas Chevrolet Optra will be available with an extra cost of Rs 10,000. The price of Captiva from the SUV segment will also increase in the same range.