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GM to hike car prices by mid-January


General Motors (India) is set to revise its car prices across models by mid-January 2011.

"We are reviewing the cost pressure, but there will be an increase in prices across models from the first week of January," GM (India) Vice-President (Corporate Affairs) P Balendran told PTI on the sidelines of SIAM (Society of Indian Automobile Manufacturers) and CII oraganised Auto Show East.

"We typically increase prices between 1.5 per cent and 3 per cent," he said when asked about the expected hike in prices.

"There is a huge input cost pressure. Some component prices have increased between 5 per cent and 15 per cent," Balendran said.

GM India's last price revision was done in June-July.

GM had earmarked $500 million investment over the next two years to expand operations, launch new vehicles and ramp up dealership network all over the country.

"We have invested over $1 billion so far and we plan to invest another $500 million for our future expansion," GM India President and Managing Director Karl Slym had said recently.

The US-based automaker plans to launch six new vehicles in the country over the next 24 months, including, van, hatchback, small car and SUV categories.