"We are planning to increase the prices in the range of 2-4 per cent across our entire range of products from January. It was in October 2013 that we had taken our last price hike," Maruti Suzuki India (MSI), Executive Director (Marketing and Sales) RS Kalsi informed.

The company had been absorbing the impact of higher input cost for quite some time now, he said.

"We have been absorbing the impact of higher input costs for quite some time now but we did not hike the prices because the market was not doing well."

Maruti Suzuki India sells a range of vehicles, from Alto 800 to Grand Vitara, priced between Rs 2.37 lakh and Rs 24.6 lakh (ex-showroom, Delhi).

Earlier in the day, its rival Hyundai Motor India also announced a price hike by up to Rs 25,000 from next month across its models.

Last week, German luxury car maker BMW had announced that it will raise product prices in India by up to 5 percent with effect from the first week of January.

General Motors India had also announced a price hike by up to Rs 20,000 from January in order to partially offset rising input costs.

Last month, Tata Motors and Mahindra & Mahindra had announced to hike prices in the range of 1-2 percent citing higher input costs.