NEW DELHI: General Motors India today said it will hike prices of its vehicles by up to Rs 30,000 from next month to offset rise in inputs costs and adverse impact of foreign exchange fluctuation.
"Effective from January 1, 2017, the estimated price increase on all the Chevrolet cars will range between 1 per cent to 3 per cent depending on the product and variant which will make vehicles approximately Rs 30,000 higher in 2017," the company said in a statement.
Commenting on the development, GM India Vice President of Sales & Network Hardeep Brar said: "In the adverse market conditions, the price hike is necessitated on account of higher manufacturing cost as the input prices surge year-on-year."
He further said, "In line with the industry practice and rising manufacturing and other administrative cost, we proposed a price increase across our product line in India."
With the increase in Foreign Exchange rates and high inflationary cost, there has been a considerable increase in raw material pricing leading to higher manufacturing cost in the sector, which is the primary reason for the price hike, he added.
GM India sells a range of vehicles from the hatchback Beat at a starting price of Rs 3.95 lakh to SUV Trailblazer tagged at Rs 24.37 lakh (ex-showroom Delhi).
Already companies, including Hyundai Motor India, Tata MotorsBSE -0.68 %, Toyota, Nissan, Renault and Mercedes-Benz have announced that they would hike prices of their vehicles from January.
Source: economictimes.indiatimes.com