General Motors India to increase prices by up to 2 percent

Automobile manufacturer General Motors India on Friday said that from January next year it will increase by up to two percent the prices of its locally-built Chevrolet vehicles.

"General Motors India will increase prices of locally built Chevrolet vehicles by up to two percent with effect from January 2016 depending upon the various models and variants, in order to partially offset rising input costs and foreign exchange fluctuations," a company spokesperson said.

On Thursday, passenger automobile major Maruti Suzuki had said that it will increase the prices of its models from January 1, next year, by up to Rs.20,000.

According to Maruti Suzuki, the price increase has been necessitated due to a rise in input cost due to the weakening of rupee.

On Wednesday, another passenger vehicle major Hyundai Motor India had announced a price hike of up to Rs.30,000 across all its models from next January onwards.

"In these challenging market conditions, we are constrained to consider the price increase on account of factors like increase in cost of components, weak rupee etc," Rakesh Srivastava, senior vice president for sales and marketing, Hyundai Motor India had said.

Lately, the rupee value has been on a downward trajectory due to heavy outflows of foreign funds from the equity and debt markets.

The foreign investors are on a selling frenzy in the Indian markets ahead of a likely US interest rate hike in mid-December.