For the third time this year, General Motors (GM) India is set to raise prices of its cars. The hike, up to Rs 10,000, will be effective September first week on three models.
On Wednesday, GM said the move follows the sharp depreciation of the rupee against the dollar.
The price of its compact car Beat, Sail, and multi-purpose vehicle Enjoy will be hiked from Rs 2,000 to Rs 10,000.
“The market continues to be in a depressed condition because of the rupee depreciation and other conditions, all related to economic situations. Therefore, we have decided to raise prices up to Rs 10,000 from September 1,” P. Balendran, Vice-President, told
Balendran said the company was also evaluating on price hike of other models depending on the market conditions.
Asked if this could have a negative impact during the festival season, he said the automobile market in any case is not expected to perform well during the festival season, as many customers are postponing their decision. Fuel price hike is also a reason.
“However, the sales will be marginally better as compared to first half of the year,” he said. Balendran agreed that heavy discounts due to competitive pressure were also not helping. It, in fact, was impacting the margins.
He said the company may soon start production of the hatchback Sail and Tavera MUV once it gets the approval.
ronendrasingh.s@thehindu.co.in