Maruti Suzuki India Ltd, the country's largest passenger car manufacturer is planning to raise car prices because of higher costs, indicated a company official. The automaker last raised prices by around 2 per cent in the month of January 2009.

S N Burman, head of Maruti commercial business said on Wednesday, "We are actively considering to raise prices. It may take a couple of weeks." Mr. Burman was speaking at the sidelines of the launch of company's new multi purpose vehicle 'Eeco'.

He did not disclose the extent of the price rise. Fiat India Automobiles and Toyota Kirloskar Motors have also announced price hikes as inputs price rise in the market.

The cost of inputs like steel, copper and nickel has increased forcing the company to raise the product prices. He further said that the company has a policy of absorbing input cost rise as far as it can however at current levels the input cost rise cannot be sustained unless product prices are raised.

Some sources say that Maruti negotiates steel prices for six months while prices of other inputs are either hedged or left open. The cost of steel products used in automobiles and appliances was raised by Tata steel by Rs 1,500 per tonne while prices of other inputs rose to the tune of 15 per cent for rubber, 13 per cent for aluminum and 23 per cent for copper.

The company also plans to source more of its inputs locally to save import costs. It imports about 25 per cent of total components currently. Out of which 10 are imported directly and 15% from vendors. The company plans to reduce imports from the vendors by around 5% in the next 2-3 years.

Maruti is growing at an industry rate of 19-20 per cent while it holds a market share of 56 per cent in the domestic market. The company will continue with its Maruti 800 model while it will stop making Omni and Alto models BS four.