General Motors India have announced that they will be increasing prices of their cars by 1 to 3 percent by January 2013. GM India sells cars under the Chevrolet brand in India. In all they sell 9 models, Aveo, Aveo UVA, Beat, Captiva, Cruze, Optra, Sail UVA, Spark and Tavera. The reason behind this increase in car prices, is because of the fluctuation in Indian rupee.
Mr P Balendran, Vice President, GM India, said that depending on the models, the price hike will vary. He also said that rising input costs was also one of the major reason behind implementing a hike this time. GM India price hike announcement comes after, Maruti and Toyota increased their car prices in the Indian car market.
Indian auto industry is facing a tough period this time around. Sales during the month of Diwali 2012 were below expectations. Major car makers in the country are registering negative growth rates. Rise in fuel prices, coupled with high rate of interest on car loans, has pushed car buyers away.