General Motors India on Tuesday said it will raise the prices of its entire range of vehicles by up to Rs 10,000 from first week of June to offset the increase in logistic costs following hike in diesel rates.
“With diesel prices going up on regular intervals, transportation and other logistic costs have gone up significantly. We are left with no option, but to pass on the burden partially to consumers,” General Motors India Vice President P Balendran said.
The company will raise the prices of its entire range of vehicles from first week of June, he added.
“We are yet to finalise the exact amount, but it will be up to 1.5 per cent, which will be around Rs 10,000, depending upon different models and their variants,” Mr Balendran said.
GM India’s small car Spark is currently available for Rs 3.31-4.15 lakh. Another small car Beat is offered between Rs 3.88 lakh and Rs 5.97 lakh.
The company’s latest offering multi-purpose vehicle ‘Enjoy’ is sold at Rs 5.49-8 lakh, while the multi-utility vehicle Tavera’s price starts at Rs 6.88 lakh and goes up to Rs 10.84 lakh.
Since January this year, the state-owned oil firms had been mandated to raise prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.
In this month, diesel prices were hiked by Rs 1.02 per litre, the fourth increase in rates this year. Earlier, diesel prices were raised by 45 paisa in March, excluding VAT.
Similar hikes had taken place in January and February, but prices were not changed in April when Parliament’s Budget session was on.