General Motors India, the Indian arm of the American automobile manufacturer General Motors (GM) has announced that it will not implement a price hike before the Budget announcement in February 2013.
According to Mr. P Balendran Vice President General Motors India, the company has been absorbing the rise of 10-20 percent in the input costs. He states that the options of price increase are being evaluated by the carmaker and a decision about the implementation is yet to be taken.
A price increase of 1-3 percent is expected on all car models except the latest additions of the Chevrolet Sail and the Sail U-VA to its portfolio in India.
The American carmaker has witnessed a drop of 16 percent in its sales in the year 2012 in comparison to its sales in the year 2011. Mr. Balendran attributed the drop in sales to be in line with the industry trend and expects a recovery in the year 2013.
The carmaker expects to further boost sales with the launch of the new Enjoy MPV which will be introduced in the Indian car market by the end of March 2013. It also has electric vehicles planned for the commercial roll out and is awaiting clarity on the policy from the Indian government.