GM India announces price hike across its portfolio from June

Posted on: May 22, 2013 - 12:24pm IST

GM India announced last evening that it will hike the prices of its entire model lineup starting from the first week of June. The move is to tackle the increasing transportation costs which were triggered by the inflating diesel price.

Mr. P. Balendran, Vice President, GM India stated, “We have decided to increase the prices of all our vehicles upto Rs. 10,000 depending upon the model with effect from the first week of June on account of increase in transportation costs/logistics due to hike in diesel price. In percentage terms, the increase goes up to 1.5 per cent depending on the model.”

Chevrolet Enjoy front right
The Enjoy’s price competitiveness is being challenged by the proposed price hike.

GM India is still in the process of launching the Chevrolet Enjoy in 13 important cities phase wise. By the time of the Chennai launch on Monday last week, seven cities were covered and six were remaining.

The increase in the price is marginal but it strikes GM at a time when market conditions are adverse. Newly launched products like the Sail U-VA, Sail notchback and the Enjoy are expected to be affected by this move.

However, GM India has the three year Chevrolet Promise free maintenance plan which appeals to a prospective customer. The plan needs the customers to pay a marginal fee at the time of purchase of the car, and in return it offers free scheduled maintenance for 3 years/45,000km. In case of the Enjoy diesel, a customer needs to pay Rs. 30,499 for the Chevrolet Promise.

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One thought on “GM India announces price hike across its portfolio from June

  1. GP says:

    This is what GM has always done a few weeks after the launch of promising project(s) in its portfolio and thus other manufacturers take this as a yard stick and increase their prices too. If Enjoy has to take on its rivals like Ertiga, its better that GM leaves the pricing untouched else, a ‘marginal’ difference of few thousands of INR will have the prospects geared to Maruti.
    Again a point to note that the increase in price may not be marginal as its done of ex-showroom pricing, also notice that ‘the marginal increase in pricing is not striking GM, GM is bringing around this, so it should be vice-versa.
    I would like to add here that the Chevrolet Promise of Rs.30,499 (as indicated by you) can no where be termed ‘marginal ‘.
    If GM needs to stick around and capture the Indian consumer minds, it should definitively refrain from such price maneuvers – it will not seek any justification from the consumers

    Reply

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Nithyanandh
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!