Auto India, Car India

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They already did that in January and it seems like that decks are cleared for yet another spell. Any guesses? Yes, we are talking about increase in the prices of Chevrolet cars in India.

The American auto major already increased the prices of its cars in January by 2 percent and again going to do the same. Probably for the first time in the history of automobiles, a price increase would happen within a span of just two months.

Providing you an insight, Chevrolet is currently offering great value in its products. Company’s models like Spark and Beat are real ‘value for money’ products. However, undercutting rivals seems to be taking a heavy toll on company’s profit margins and that’s why it’s forced to consider a price hike for a second time in this year.

Adding woes, inflation is also consistently making the commodity prices shoot and it’s not helping the company in any case.

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.

General Motors India Vice-President P Balendran was stated as saying on the sudden price hike.

The company had increased the prices of its models by 2 percent and it would be interesting to see if other auto majors also follow suit.

Chevrolet’s Beat and Spark are currently selling like hot cakes in the Indian automobile market owing to their price advantage over the rivals and also due to the company’s much advertised ‘Three Year Promise’ plan.

It would be pivotal to see and report if the sales of these compacts get affected when the price hike is implemented.

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