General Motors' Indian subsidiary is to raise its car prices in the country, a senior official from the company was quoted saying today.

The move will see car prices rise 1-2% from 9 January to cover rising production costs.

Vice president P Balendran told Reuters price rises were to cover input costs and the weakening of the rupee last year.

He added that the company had not set a 2009 sales target due to uncertain market conditions.

"Normally we fix targets in January, but this year we have not done so. Last year everyone said the market was likely to grow by at least 22%. Then it was scaled down," he said.

"We do not expect the market to improve at least for the first six months of 2009."

General Motors India December sales fell 35.95% year on year to 4,041 units last month.

The small Spark was the most popular model with 2,832 sales, well ahead of the Aveo (867) and multi-purpose Tavera (509).

For the latest calendar year, GMI posted 9.44% growth to 65,702 units versus 60,032 units in 2007.

"Since the market has slowed down completely, we could not meet our target although we have registered a marginal growth this year," Balendran said.