GM to raise prices 3%, others may follow

Carmaker General Motors India today said it would raise prices of its models by two to three per cent from next month due to rising input cost.

“We will increase prices across all eight models by two to three per cent from the first week of July,” General Motors India Vice-President P Balendran said.

“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,” he said.

Other leading carmakers like Toyota, Ford and Fiat also said they were considering a price increase if commodity prices continued to rise at the current rate.

Overall, commodity prices have gone up 25 per cent in the recent times.

Carmakers have already raised their prices thrice — first in January due to rise in input costs; second, following a two per cent excise duty increase in the Union Budget; and third, after the introduction of new emission norms.

“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,” Toyota Kirloskar Motor’s Deputy Managing Director (marketing) Sandeep Singh said.

Fiat India Automobiles’ Chief Executive Officer Rajeev Kapoor also said input costs have risen sharply in recent times.

However, the auto major “has not yet decided on a price hike,” he said.