General Motors India has said that it will increase its car prices by up to two-and-half per cent across models due to increasing input costs.
“We will be increasing the prices of our models between 1.5 and 2.5 per cent from January first week next year to offset rising input costs. The increasing input cost is our biggest concern. After the commodity prices reached its bottom, now all materials like steel, aluminium and rubber are rising and Some component prices have increased between 5 and 10 per cent.” General Motors India (GMI) Vice-President P Balendran said.
GM’s last price hike came in June-July this year. GM recently crossed the one-lakh sales mark in a calendar year for the first time since its inception in the country.
The company plans to enhance its dealership network to 300 from current 219 by March 2011.
“We will open more dealers in the Tier-II and Tier III cities coming days. We will increase our dealership network to 240 from present 219 by this month-end," he said adding "the dealership network will increase to 300 by March 11.”
General Motors plans to launch six new vehicles in the Indian market including, van, hatchback, small car and SUV.