GM India may increase the price of Chevrolet cars

Chevrolet is currently offering great value in its products, with the Spark and Beat coming across as get VFM products. However, undercutting rivals seems to be taking a toll on the company�s margins, and the American carmaker is considering a price hike. Inflation is consistently making the commodity prices shoot northwards, and the situation is not helping the company.

General Motors India Vice-President P Balendran, in a statement given to PTI said, �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.�

GM India, along with most other car manufacturers had increased the price of its cars by up to 2 percent in January 2011. If the company increases the price yet again, it would be the second increment in a span of a mere three months.

The Beat and Spark are currently doing very well owing to their price advantage over the rivals and also due to Chevrolet�s much advertised Three Year Promise. If the prices go up, the sales of these compacts may get affected.