GM ups prices by 3%, other car-makers may follow
Surging input prices are likely to push up costs for car-makers, forcing them to raise prices in the coming days.
Mumbai: Surging input prices are likely
to push up costs for car-makers, forcing them to raise prices
in the coming days.
While companies like Toyota, Ford and Fiat are mulling
a price-increase if commodity prices continue to rise at the
current rate, auto-major General Motors India has already
decided to increase its prices by 2-3 per cent from next
Overall, commodity prices have gone up by 25 per cent
in recent days.
"We will be increasing prices across all eight models
by 2-3 per cent from July first week to offset rising input
costs," General Motors India`s Vice-President P Balendran,
"Prices of commodities like steel and rubber have
risen sharply since the second quarter of last year. So, we
have been forced to increase prices this time," Balendran
Car-makers have already hiked their prices thrice
- first in January due to rise in input costs, second
following a two per cent excise duty hike in the Union Budget
and third after the introduction of new emission norms.
"We are reviewing the situation this time and will
take a call by this month-end. Commodity prices has gone up
sharply in recent days," Toyota Kirloskar Motor`s Deputy
Managing Director (Marketing), Sandeep Singh, said.