Car-maker General Motors India on Sunday said it will hike prices by up to two-and-half per cent across models due to rising input costs effective from January 2011.
"We will be increasing the prices of our models between 1.5 and 2.5 per cent from January first week next year to offset rising input costs," General Motors India (GMI) Vice-President P Balendran said.
"The increasing input cost is our biggest concern. After the commodity prices reached its bottom, now (prices of) all materials like steel, aluminium and rubber are rising," Balendran said adding, "Some component prices have increased between 5 and 10 per cent."
The company's last price revision was done in June-July this year.
GM India has already crossed the one-lakh unit sales mark in a calendar year for the first time since it started operating in the country. The company achieved the feat last month, meeting its yearly target with over a month still to go.
"Our Chevrolet Beat and Cruze are in good demand in the Indian market," he said.
The company plans to ramp-up its dealership network to 300 from present 219 by March 11.
"We will open more dealers in the Tier-II and Tier III cities in coming days. We will increase our dealership network to 240 from present 219 by this month-end," he said adding "the dealership network will increase to 300 by March 11."
The company had earmarked USD 500-million investment over the next two years to expand operations, launch new vehicles and ramp-up dealership network pan-India.
"We have invested over USD one billion so far and we plan to invest another USD 500 million for our future expansion," GM India President and Managing Director, Karl Slym, had said recently.
GM plans to launch six new vehicles in the country over the next two years, including in van, hatchback, small car and SUV categories.
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