CHENNAI, Dec 25: The fall of the rupee against the dollar and the consequent increase in the cost of imports has forced General Motors India Ltd (GMI) to hike the price of the Opel Astra by Rs 11,500. ``The hike implemented recently, passed on the increased cost partially,'' company sources said.

The ex-factory price of the Opel Astra -- GMI's lone model in the country -- has increased to Rs 6.85 lakh from Rs 6.74 lakh. In Chennai, the ex-dealer price has gone up to Rs 7.83 lakh after the hike.The Opel is at present manufactured with an indigenisation level of about 50 per cent. The balance is imported in the form of knocked-down kits.

Mahindra Ford India Ltd (MFIL), another auto manufacturer relying on import of kits has ruled out a hike in the near future. ``Our forex cover is comfortable to keep us going for the next two months,'' an MFIL spokesman said.General Motors's price hike, coming as it did in sluggish market conditions, has however not had an adverse impact on sales, according to the company official. ``This is probably because the quantum of the hike is low,'' he said.Interestingly, most luxury cars are being sold at discounts to the quoted price. It is reliably learnt that dealers are offering discounts as high as one lakh rupees on Daewoo's Cielo. However, other luxury car models including the Opel, Ford Escort and Maruti are being offered at discounts varying between Rs 10,000 to Rs 25,000.

Reacting to this, the GMI official conceded that the company could even slash Opel prices later, should the poor market conditions continue.Sales of the Opel had come down to under 350 during November, after averaging over 900 cars per month during the first half of the current year.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.