General Motors India, a wholly-owned subsidiary of US-based General Motors Corporation, today said that it will increase the prices of its cars by 2-3 per cent in January 2009. The company will also withdraw the discount scheme offered on its various models simultaneously.
According to P Balendran, director and vice-president (Corporate Affairs), GM India, the move to hike prices is being taken following the drop in its bottom line during the year. GM India’s product line-up includes Chevrolet Captiva, Optra, Aveo, SR-V, Aveo U-VA, Spark and Tavera.
“We have been offering a discount scheme on our models for an extended period from October. We can no longer take a hit on our bottom line and hence we have decided to effect an upward revision in the prices of our car models. The prices will be increased on all our models from January,” he said. The company has invested $1 billion in the country for the past 12 years.
Talking to the reporters here after launching the new Chevrolet Aveo U-VA, he said GM India has been offering a discount in the range of Rs 20,000 to Rs 58,000 on various models since October this year. In addition to this, it is also offering a discount of Rs 3,000-5,000 to state and central government employees.
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