Car prices set to increase by January

Come New Year, cars will be costlier with automakers like Toyota and General Motors on Tuesday saying that they will hike prices by up to three per cent due to rising input costs, while the country's largest car maker Maruti Suzuki India is still evaluating the situation.

"We will be increasing the prices of our models by 2-3 per cent from January first week to offset rising input costs," General Motors India vice president P Balendran said.

GMI sells models, including hatchback Chevrolet Spark and Aveo UVA, sedans Aveo, Optra, Cruze and SUV Captiva.

Toyota Kirloskar Motor also said it will increase the prices of three of its models -- Innova, Corolla Altis and Fortuner -- by 1.5 to 2 per cent from January 1 next year.

The price hike decision has been taken in view of increasing input costs and unfavourable exchange rate, Toyota Kirloskar Motor said in a statement.

"So far, we have absorbed the increase in total costs owing to the unfavourable exchange rate and increasing input costs. However, now we are compelled to pass on, a part of it, to customers," TKM deputy managing director (marketing) Sandeep Singh said.

Maruti Suzuki India (MSI), however, has not taken a final decision on price hike, although the rising input costs are putting pressure on its margins.