New Delhi: General Motors (GM) India and Toyota Kirloskar Motor (TKM), both have decided to raise prices of cars across range on account of rising input prices.

TKM said that this has become necessary due to the fact that raw material prices are on the rise in response to inflationary trends.

Sandeep Singh, Deputy Managing Director (Marketing), TKM, stated that company will raise prices by 2 percent across their vehicle range. The prices are likely to rise from October 2011.

Although TKM has already increased the prices of its vehicles twice this year, it still has managed to sustain its sales figures.

Similarly, General Motors have also indicated to raise their prices across their vehicle models.

General Motors India President and MD, Karl Slym said, “looking at the current scenario of the car market, it so hard to bear the cost of raw materials. We may decide on price hike by October.”