The New Year is all set to start at an expensive note as all major automobile manufacturers have decided to raise prices in order to combat higher input costs.

To nurse bruised margins and push up sluggish December sales, most companies have announced increased prices to apply from January 2007.

Maruti, the country's biggest carmaker, has informed its dealers that it will raise prices across the model range by up to Rs 12,000 from next month.

Major carmakers like Toyota and Skoda have also indicated they will be increasing prices from January. On the two-wheeler side, both market leaders Hero Honda and Bajaj have said they will be increasing prices in a range of Rs 500-1,000 from the New Year.