General Motors to raise prices from Jan 1

Joins Tata Motors and Mahindra & Mahindra, who raised their prices in the range of 1-2% last month

General Motors will raise car prices to the tune of 1 per cent from January 1 to offset its input cost pressure, the company said in a release today.

The Delhi-based company will be joining the league of Tata Motors and Mahindra & Mahindra who raised their prices in the range of 1-2 per cent last month.

"We have decided to increase the price of all car models to the tune of 1% with effect from January 1 due to input cost pressure. The quantum ranges between Rs 5,000 to 20,000 depending upon the models and variants," said P Balendran, Vice President, General Motors India.

Though raw material costs have remained flat in most cases wage costs and increased power tariffs have been the primary cause for costs going up.

General Motors, which sells cars through the Chevrolet brand is raising prices at a time when discounts has hit an all-time high. Discounts on all its products are more than 10 per cent of the cost of the car.