General Motors (GM) India has decided to increase prices of its diesel vehicles by up to 1.5 per cent, depending on the model, from next month.
“We have decided to increase the prices of all our vehicles up to Rs 10,000 on account of increase in transportation costs/logistics due to the hike in diesel prices,” said P. Balendran, Vice-President.
Public sector oil companies have been increasing diesel prices every month since January, which has led to a hike in transport costs, adding to the companies’ expenditure burden. Oil companies have been mandated by the Government to raise prices by up to 50 paise a litre every month till the entire losses on the fuel are wiped out.
Early this month, diesel prices were hiked by Rs 1.02 a litre.
Analysts said other companies, including market leader Maruti Suzuki India and Hyundai Motor India, may follow suit. Though these companies did not deny a possible hike in prices of their vehicles anytime soon, they said much would depend on market conditions.
“Pressure of costs is there, but the market situation leaves little scope for a price increase,” a spokesperson at Maruti Suzuki India told Business Line .
Tata Motors and Hyundai Motor India said they had ‘no plans’ to increase prices, as of now.
ronendrasingh.s@thehindu.co.in