Skoda Auto, well-known car maker, has announced that the prices of their cars would go up by around Rs 20,000 from next year.

The company has quoting higher costs of raw materials, rising freight charges, petroleum products as the reasons for increasing the prices of its cars.

A company official said, "Input costs are negotiated on an annual target achievement basis with our vendors and the increase in prices is in line with our renegotiated terms with them. The company has made efforts to keep the price rise marginal on all models."

Skoda sells premium hatchbacks Octavia, Laura and Superb in India priced in a range of Rs 11 lakh to Rs 24 lakh.

The new pricing for Skoda cars would be applicable from January 1st 2008.