The hike is applicable on all models brought out by the manufacturer. Small cars like the Alto and the WagonR face a hike of up to Rs 5,000, while new entrants such as the Vitara Brezza and the Baleno face a price increase of up to 20,000 and 10,000, respectively. These revised rates have come into effect from August 1, 2016. The statement declaring the hike read: "This price revision is based on factors like segment wise demand, forex movements and strategic objectives of the company."

This hike in prices also accounts for the hike in the manufacturing cost of cars. The last six months have witnessed a rise in steel prices by up to 36 per cent, and rubber by more than 20 per cent. We expect other carmakers to also announce a price hike for their models soon.