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General Motors To Hike Car Prices By 2%
The price hike has affected General Motor's best selling car, the Chevrolet Beat diesel with immediate effect. The Beat Diesel's price has been increased by Rs.15,000 in December itself. GM India vice president P Balendran has said the Chevrolet Beat diesel had an introductory price and the revised price was enforced due to the currency fluctuations.
Prices of diesel cars have already increased by Maruti Suzuki due to the depreciating Rupee. GM India will increase the prices of its other models such as the Spark, Aveo, Optra, Cruze and Tavera from January. Chevrolet has reported monthly sales of 8,440 units in November and is expecting the sales trend to continue.
However the price hike might have an impact on sales in 2012. Car buyers are already wary of increasing costs due to the inflation and increasing fuel prices. Carmakers are struggling to hit the right balance of having low prices without affecting their profits.
Carmakers from Japan were the first to report issues over the depreciating Rupee. With General motors also increasing prices, we can expect the other American carmaker, Ford, also to increase its prices.
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