General Motors India to hike car prices by 2-3% next month

General Motors India’s Vice-President P Balendran declared his company’s decision in a press statement as to increase in their car prices almost by 2-3% with effect from next month to off-set the rising commodity costs.

The mounting input price values are indeed pushing the car-makers to increase their cost of sales. The great giants Toyota, Fiat and Ford are thinking over to have a similar price increase if input prices keep on surging up thereby enforcing the makers to take corrective measures. At the present situation the commodity prices have already increased by 25 per cent.

GM Vice-President said that “Prices of commodities like steel and rubber have risen sharply since the second quarter of last year. So, we have been forced to increase prices this time”.

Hike in car prices was already made earlier three times. First increase was in January because of rise in commodity costs and the second two per cent increase in excise duty in the Union Budget and the third after bring into force the new emission norms.

Toyota Kirloskar Motor’s Deputy MD (Marketing), Sandeep Singh said “We are reviewing the situation this time and will take a call by this month-end. Commodity prices have gone up sharply in recent days”.

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