Tata Motors is understood to have decided to increase prices of its passenger vehicle models, except Nano and Aria, by up to 1.5 per cent from January.
According to sources, the company has finalised an increase of prices between 1 per cent and 1.5 per cent on Indica, Indica Vista, Indigo, Indigo Manza, Safari and Grande Sumo in order to offset the increase in raw material rates.
When contacted, a company spokesperson said: "Yes, there is going to be a price hike." He, however, did not elaborate.
Earlier in the day, Volkswagen said it will increase the prices of its small car Polo by over 2.9 per cent with effect from January 1, 2011.
Major car makers such as Hyundai Motor India and General Motors had also announced to increase the prices to offset the pressure from raw materials, including natural rubber, from next year.
