"There has been pressure on margins due to which we will be hiking the prices of 'Tavera' and 'optra' by 1-2 per cent...its a question of few weeks," Rajeev Chaba, president & MD, General Motors India, said.
Chaba said the company will also hike the capacity at its plant in Gujarat from the current level of 60,000 units to 80,000 units.
"This is expected to be completed by next year and we will be investing Rs 100 crore (Rs 1 billion) for this, which will take our overall investments in India to Rs 1,400 crore." he said.
Chaba said the company is planning to launch 2-3 new models in India in 2006 and added that plans were also afoot to bring in a small car.
"However a decision on whether the small car will come through a green field project or any other route will be decided in the next few months," he added.
The company has recently given up its chase for Daewoo's defunct car plant at Surajpaur and said it would be looking for alternate methods for bringing in its small car.
The company expects to sell 32,000 units in India this year against 24,000 units sold last year.
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