New Delhi, Oct. 28: General Motors India will raise prices of its cars by the end of this year. The hike has been necessitated by increasing costs of components and a rise in freight charges. Hyundai and Maruti already increased prices for similar reasons some time back.

?We will raise prices of the multi-purpose vehicle Tavera and the premium sedan Optra by 1-2 per cent. That will also be the increase across our product categories. It will happen by the end of this year,? said Rajeev Chaba, president and managing director of General Motors India.

He was speaking on the sidelines of the two-day marketing summit organised by the Confederation of Indian Industry. General Motors plans to invest Rs 100 crore to raise capacity at its Halol plant to 80,000 units by next year from 60,000 now.

Fresh funds will take General Motors?s investment in India to Rs 1,400 crore. The company will launch two to three models next year. ?There will be two to three launches next year. This will include the mini car and upgrades of certain models?.