Volkswagen to hike vehicle prices by up to 2.5 per cent from January

German carmaker Volkswagen said on Thursday that it will increase vehicle prices by up to 2.5 per cent in India from next month in order to offset impact of high input costs.

The price increase would be effective from January 1, 2014.

"We have been faced with constant rise in input cost over the past several months and have tried our best to absorb it," said Volkswagen Passenger Cars' managing director, Arvind Saxena.

"However, in order to maintain our quality standards that our customer expects from us, we have had to increase the price by a small percentage," Mr Saxena added.

Volkswagen sells the Polo, Vento, Jetta, Passat, Touareg and Phaeton in India.

Mahindra & Mahindra also announced on Thursday to hike prices of its passenger and commercial vehicles by up to 2 per cent from next month. (Read more)

On Wednesday, French auto major Renault announced it would increase vehicle prices in India from next month to offset higher costs. The company's wholly-owned unit Renault India sells five models in India, including SUV Duster and compact car Pulse.

Earlier, Nissan said prices of its vehicles, including hatchback Micra and sports utility vehicle Terrano in India, would be hiked by up to 4 per cent from next month.

Tata Motors, Maruti Suzuki India and Hyundai have also announced price increases from January, joining Mercedes, BMW, Audi and Honda.