This move comes after Government's decision to increase the central excise duty to 10 percent.
India's largest car maker, Maruti Suzuki India (MSI), said its car will become costly by two percent.
MSI Chairman R C Bhargava said, "Car prices will go up by about two percent. This is essential to offset the increase in central excise duty announced by the Finance Minister."
Hyundai Motor India said it will result in a price rise of Rs 6,500-25,000 on average.
Volvo Auto India also said that the increase in excise duty will result in increase of price of its cars.