Most of the car markers in India announced that they are increasing their Cars prices starting January 2011. According to sources from the industry, the companies have been facing cost pressure in the input cost most especially in the essential raw materials cost and other production cost that are increasing leaps and bounds. For a long time, the companies are absorbing the prices of the production however, the profits are now lessened which was why they were compelled to increase the prices of their cars. According to reports, the automobile makers utilize this time of the year to increase their sales. Maruti Suzuki India, the biggest auto manufacturer in India recently announced that the company intends to raise the prices of its cars. The reason for such an increase is the imports cost that is getting dearer because the yen is getting stronger and the massive price increase of the raw materials. But then the company is still deciding on how much would be the hike for their car models. According to the Managing Director for Sales and Marketing of Maruti Suzuki India, Mayank Pareek, they have observed that in the recent months, the price of the inputs have increased largely. The company was absorbing the price of the production for quite a long time already but because of decreases in the profit margin, the company has to also increase the prices of its cars. Hyundai Motors, on its end also declared that the company will increase the price of its cars in the Indian market. The company is expected to set 2% increase due to the rising cost pressure. According to Arvind Saxena, the Director for Sales and Marketing of Hyundai Motors, the company incurred the raw material cost but with lower profit margin, the company now wishes to pass the burden to customers. The Japanese companies also plan on a hike of 1.5 to 2% of the prices of its vehicles. The announcement by the Japanese automakers happened after General Motors India declared that they are increasing their prices. The American automaker says of the same reason for the increase of 2.5 per cent increase.