GM to up prices by 3 pc, other carmakers likely to follow
Carmaker General Motors India today said it will raise prices of its models by 2-3 per cent from next month due to rising input cost. Other leading carmakers are expected to follow.business Updated: Jun 20, 2010 13:35 IST
Carmaker General Motors India on Sunday said it will raise prices of its models by 2-3 per cent from next month due to rising input cost.
"We will be increasing prices across all eight models by 2-3 per cent from July first week to offset rising input costs," General Motors India's Vice-President P Balendran said in Mumbai.
"Prices of commodities like steel and rubber have risen sharply since the second quarter of last year. So, we have been forced to increase prices this time," Balendran said.
Other leading carmakers like Toyota, Ford and Fiat also said that they are mulling a price-increase if commodity prices continue to rise at the current rate.
Overall, commodity prices have gone up by 25 per cent in recent days.
Car-makers have already hiked their prices thrice - first in January due to rise in input costs, second following a two per cent excise duty hike in the Union Budget and third after the introduction of new emission norms.
"We are reviewing the situation this time and will take a call by this month-end. Commodity prices has gone up sharply in recent days," Toyota Kirloskar Motor's Deputy Managing Director (Marketing) Sandeep Singh said.
Fiat India Automobiles' Chief Executive Officer Rajeev Kapoor also said that input costs have risen sharply in recent times.
However, the auto major "has not yet decided on a price hike," he said.
"The company is assessing the impact of the commodity price hikes. As of now we have not decided about a price hike," Ford India's Executive Director (Marketing and Sales), Nigel Wark, said.
Maruti Suzuki India also echoed same view--"yes, commodity prices have gone up but we have not yet decided whether to hike our prices or not," the company's Assistant Manager (Corporate Communications), Harish Joshi, said.
According to the Society of Indian Automobile Manufacturers, the total sales for all categories stood at 12,08,851 units in May as against 9,29,917 units during the year-ago period.