General Motors' (GM.N) India unit will launch six new vehicles and will invest $500 million over the next two years, its country head said on Thursday, as it looks to tap demand in one of the world's fastest growing car markets.
GM, which pulled off the biggest initial public offering in U.S. history on Wednesday by raising $20.1 billion, will also increase its dealer network in India to 240 by the end of this year from 211 now, Karl Slym told reporters.
The first model from the new product line-up will be a sports utility vehicle, Slym said.
The carmaker joined local rivals Tata Motors Ltd (TAMO.BO) and Maruti Suzuki (MRTI.BO) in voicing concerns over rising input costs and said it would increase prices of all its models in January due to higher costs of steel, rubber and precious metals.
"(Input) prices are very problematic at the moment ... if it continues, prices will increase," Slym said.
GM models sold in India include the Chevrolet Beat, the Chevrolet Spark and the Chevrolet Tavera utility.
A number of global automakers in India such as Toyota (7203.T), Honda (7267.T), Volkswagen (VOWG.DE) and Ford (F.N) as well as GM are lining up new models and boosting investment in the country, responding to brisk demand in Asia's third-largest economy.
French carmaker Renault's (RENA.PA) Indian unit will launch five cars between mid-2011 and mid-2013, its India head said in August.
