India's biggest car maker Maruti Udyog Ltd on Monday said it would also increase the prices of its cars following suit of its nearest rival Hyundai, which announced hike in prices of its two models Getz and Accent to be effective this week.
"The quantum of increase and the models for which the price would be increased has not been decided, but in principle the company has decided to increase price of our products effective from October 1," a company spokesperson told PTI.
Citing increased freight rate on account of the recent hike in diesel prices as the main reason for price hike, the spokesperson said the company had to pass on some of it to the customers.
The recent diesel price increase had resulted in about 4-5 per cent rise in the truck freight rates across the major trunk routes in the country.
Korean auto giant Hyundai Motor India also said it would increase the prices of its two models -- Accent and Getz, this week. "We will announce a price hike for Accent and Getz before Oct 1," company's president B V R Subbu said in New Delhi.
He said that the price hike should have happened last week but was held back due to certain reasons. Accent is likely to cost more by Rs 7000 to Rs 8000 while the hike in Getz prices would be marginally lower.