General Motors India recently made a big announcement saying that the company will be increasing the prices of its offerings by 2.5% with the starting of year 2011. The hiked up prices will come into action in the first week of January 2011 and will lie between 1.5 to 2.5 per cent. The statement was made public by P Balendran, the Vice-President of General Motors India. The increase in cost of its cars is owned to the rising cost of inputs and Mr. Balendran showed deep concern towards it.

The increased price of commodities like Aluminium, Rubber and Steel which has overall pushed up the end price of the cars. According to company officials, the prices of a few commodities have increased by nothing less than 10% which is the biggest concern for the company at present.

 

 

Balendran also stated that the company wants to open up a few more dealerships in Tier–II and Tier-III cities of India of its latest models Chevrolet Beat and Chevrolet Cruze as these models are receiving high demand. With that the company intends to increase the total dealerships of Chevrolet Beat and Chevrolet Cruze to 300 in India by March 11 and for now by month end it will increase to 240 from existing 219.

 

General Motors India is also in a process to pen down six new models for the ever expanding Indian Auto Market. The launches will be made by 2012 along with the investment of US$ 500 Million in view to enhance their manufacturing capacity and expand their operations as well.

At present, the company is holding successful cars within its segment namely Chevrolet Spark, Chevrolet Beat, Chevrolet Aveo, Chevrolet Optra Magnum, Chevrolet Tavera and Chevrolet Cruze. All these products are creating magic in their individual segment attracting good demand. With increase in the price of the cars might affect the product in market.