The American major auto company General Motors is thinking of rising the prices of its Chevrolet cars in India. The company has already increased the prices in January by two percent and it will be the first time in the history of automobiles a price increase would happen within a span of just two months.
Chevrolet is offering great value in its products like the Spark and Beat which are showing lot of sales because of their price advantage over the competitors and the company’s much advertised ‘Three Year Promise’ plan. The company is also offering other products like Aveo, Optra, Cruze, Tavera, Captiva which are well known as value for money products. The undercutting of the rivals has a great effect on the profits of the company and so the company is forced to consider a price hike for a second time in this year and the other factor is the inflation which is consistently making the prices of the commodities to increase.
It is interesting to watch whether the sales of these models will decrease with rise in the prices. Some of the other automobile companies in India are also planning to increase the prices of their products.