It is reported that General Motors India, the Indian subsidiary of American automobile giant GM, may consider a price hike after a review meeting next month. Already several auto makers like M&M and have announced a 2% hike due to growing costs.

Mr Karl Slym president & MD of General Motors India said that "We regularly review the situation, see the situation and we will take a decision on a price hike at our meeting next month. Commodity prices are crazy but as the market slows down, these could stabilize although this has not happened. Crude and steel prices are still high and prices of precious materials, used in catalytic converters, are very volatile."

It was reported that he was confident that the GM will beat industry growth for a second consecutive year.

He said that "In 2010, when industry grew at 30%, we grew at 60%. This year, too, we will be double the rate of growth of the automobile industry. During July and August, the passenger car market has shrunk but we grew at 14% in July and 10% in August because last year we did not have a diesel in the mini segment."

It was also mentioned that referring to the five new products that GM India will launch in the next 15 months. He said two of the five will be made at Talegaon, its passenger car plant, and three at Halol in Gujarat, its commercial vehicle plant. Of the five, two will be of SAIC design and the remainder three from GM. The Talegaon plant capacity will increase to 172,000 capacity from 140,000 currently by December 2011, to handle the new products.

(Sourced from www.wheelsunplugged.com)