GM is doing extremely well in the Indian auto industry. Their small cars Beat and Spark are topping sales charts. GM had priced their cars very aggressively in order to keep a check on their rivals in India. But finally it seems like their strategy is taking a toll on their profits.
In an interview with PTI, Mr P Balendran, VP, GM India stated, “We may consider increasing prices again for the second time this year if prices of raw materials continue to increase.The increasing input cost is now the biggest concern for auto makers. We will review the situation (cost of raw materials) by this month-end and will take a call by early next month.”
Earlier this year in January, along with other car manufacturers in the Indian auto industry, GM too had increased the prices of their products by 1-2%. Industry experts had predicted that there will be another price increase coming soon. It seems that car buyers in India should prepare themselves to pay more for their cars once again.
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