GM India to hike car prices by 2-3% in January

General Motors India, a wholly owned subsidiary of US-based General Motors Corp, today said that it will increase prices of their cars by 2-3% in January 2009.

The company will also withdraw discount scheme offered on its various models simultaneously. According to P Balendran, director and vice president (coroporate affairs), GM India, the move to hike prices is being taken following the drop in its bottomline during the year.

"We have been offering a discount scheme on our models for an extended period from October. We can no longer take a hit on our bottomline and hence we have decided to effect an upward revision in the prices of our car models. The prices will be increased on all our models from January," he said.

Talking to reporters, here after launching new Chevrolet Aveo U-VA, he said GM India has been offering a deep discount ranging from Rs 20,000 to Rs 58,000 on various models since October this year. In addition to this, it is also offering 3,000-5,000 discount to state and central government employees. With effect from January all these discounts will be withdrawn, he said.

During the period January to November 2008, GM India sold 65,000 units, a growth of 8.2%t over 2007. By end of 2008, the company hopes to clock a growth of 20% in its sales to touch a level of 72,000-75,000 units, Balendran added.