New Delhi, Nov 15: Daewoo India is likely to hike the price of its small car Matiz by Rs 15,000 to Rs 20,000 early next year. This has been necessitated as the company has experienced a steep rise in the production costs in the last one year, said sources close to the company.The company is all set to step up production in a phased manner to 6,000 units a month by starting its second shift of production in December this year, sources added.
Company sources said material costs have gone up by 10 per cent in the last one year. "However, the price increase would range between 5 per cent and 7 per cent across the four variants of Matiz," sources said.
The company plans to meet the gap through productivity increase and cost-cutting exercise.
However, there would be no change in price of Daewoo's premium mid-segment offering Ceilo Executive and Nexia, sources said.
Officials point out that the company had not increased the price of its Matiz model at the time of making it Euro-II ready.
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