General Motors To Hike Prices By Rs 30k From 2017

Price rise has been the story of the month as another carmaker, this time the American General Motors, has decided to hike the prices of its vehicles by up to Rs 30,000, effective from January 1, 2017. The hike has been effected to offset the rise in inputs costs and the adverse impact of foreign exchange fluctuation, according to the carmaker.

“Effective from January 1, 2017, the estimated price increase on all the Chevrolet cars will range between 1 per cent to 3 per cent depending on the product and variant which will make vehicles approximately Rs 30,000 higher (sic) in 2017,” the company said in a statement. 

"In the adverse market conditions, the price hike is necessitated on account of higher manufacturing cost as the input prices surge year-on-year," said the company’s vice president of sales and network, Hardeep Brar.   

With the increase in foreign exchange rates and high inflationary cost, there has been a considerable increase in raw material pricing, leading to higher manufacturing cost in the sector, which is the primary reason for the price hike, he added. 

The manufacturer’s portfolio in India ranges from the entry level Beat, which starts at Rs 3.95 lakh, to the Trailblazer SUV that comes with a sticker price of Rs 24.37 lakh (all prices, ex-showroom, Delhi). The carmaker had also announced discounts across its line-up last month.

As for the increase in prices, the brand with the bowtie emblem follows in the footsteps of other manufacturers that have adopted the same approach against rising input costs. The list includes Hyundai, Tata, Toyota, Renault, Nissan and even premium carmakers like Mercedes-Benz.