India's biggest carmaker Maruti Udyog Ltd on Monday said it would increase prices by next month.
"We will take a decision to hike prices soon. The rise will be applicable from January as input costs and strengthening of yen is taking a toll," MUL director (sales) K Saito said in New Delhi.
Material costs like steel and rubber have gone up substantially while strengthening yen has to be taken care of, he said.
Asked to quantify the increase, he said MUL was working on the details like the quantum and individual models which would cost more.
Automakers like Tata Motors, Ford Motor India and General Motors have already announced their plans to hike prices by January.
MUL aims to save Rs 70 crore (Rs 700 million) in manufacturing costs since its aluminium foundry, established with an investment of Rs 110 crore (Rs 1.10 billion), has become functional recently.
On an average, MUL should benefit Rs 2,000 per car with the setting up of the foundry, he said.
Asked whether the company has any plan to launch the hatchback Liana, Saito said, "We do not have any such plan."
MUL reported a whopping 42 per cent rise in domestic sales in November as production normalised following resumption of supplies by its key component manufacturer.
The company sold 36,137 units last month over 25,471 units in November 2002 while cumulative (April-November 2003) sales grew by 27.7 per cent to 259,636 units.
Component supply was in full swing now, he added.