- January 26, 2009
General Motors to Hike Prices
General Motors India has announced recently that it is going to raise the car prices by 1-2% from January 9th in order to cover the rising costs, though it does not expect the markets to get better anytime soon.
With the weakening of the rupee as a currency, the prices were increased in order to cover the production costs, according to the Vice-President, P Balendran.
GM India, which is a unit solely owned by the General Motors confirmed that it missed the targets by approximately 75,000 units. However, sales were even 9.5% more than the year 2007.
The company has refrained from setting any targets for the year 2009 due to the uncertain market position.
All the companies normally set the targets in January, but this year, the companies are going to wait till March or April to come up with the targets.
At the beginning of the last year, the prospects were supposed to grow by at least 22% and then it was scaled down with the progression of the year.
Balendran also confirmed that to initiate the changes on the ground level, it would at least take three months or so.
General Motors has two main manufacturing plants in India and it intends to set up three more plants since it is coming up with its new model called the “Chevrolet Captiva”.
Chevrolet Spark mini is the highest selling model in India, especially looking at the traffic as well as the economic conditions in India.