While GM Chevrolet offersing gallops of discounts on most of its models, the american maker today said that it will increase prices of their cars by 2-3% in January 2009. Also GM will withdraw all the discount schemes being offered on its various models simultaneously. According to P Balendran, director and vice president (coroporate affairs), GM India, the move to hike prices is being taken following the drop in its bottomline during the year. With effect from January all these discounts will be withdrawn, he added.
“We have been offering a discount scheme on our models for an extended period from October. We can no longer take a hit on our bottomline and hence we have decided to effect an upward revision in the prices of our car models. The prices will be increased on all our models from January,” he said. GM is the second auto major after Honda to make a price hike in January.