German automobile major Volkswagen's Indian subsidiary on Wednesday said it would increase the price of its popular selling hatchback car model Polo by 2.9% from Jan 1, 2011.
According to the company, the hike in prices comes as the car manufacturer was facing a rise in input cost like components in the past several months.
"We have been faced with constant rise in input cost over the past several months and have tried our best to absorb it," said Neeraj Garg, director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt. Ltd.
The company said the hike in prices would help it to maintain the quality standards expected of its products.
"In order to continue to maintain our quality standards that our customers expect from us we have had to increase the price by a small percentage," Garg said.
According to him, customers who book the car until Dec 31 would be able to avail the present prices of Rs 4.34 lakh (ex-showroom New Delhi) for the petrol variant.
Polo, the first locally made Volkswagen model, was launched in March this year and has already sold more than 17,000 units as of November.
Currently, Volkswagen offers its premier sedans Jetta and Passat, assembled in Aurangabad, and also the iconic new Beetle, sports utility vehicle (SUV) Touareg as well as the luxury sedan Phaeton.