The Rs 25,000 hike (ex-showroom) in Delhi would be effected either from December 1 or January 1 to absorb the additional cost to make the popular model compliant with the stringent emission norms Euro-II, made mandatory by the Supreme Court.

The prices of different Maruti 800 models and Omni vans would shoot up in the range between Rs 20,000-25,000 whearas Zen models would be costlier by up to Rs 20,000, officials said on the condition of anonymity.

The company was working on the details for exact price hike and the date from which the hike would be effective, they said.

When contacted, MUL chief general manager (marketing) Rohtash Mal declined to comment on the price hike but said "our capability of absorbing large cost increase due to Euro-II norms compliance is indeed not there as it was in the past and car prices will have to be increased."

However, the company spokesperson confirmed that the prices of Euro-II compliant 800cc and Omni and Zen models would go up in the range between Rs 18,000 to Rs 25,000.

The company had only last week alerted its dealers by sending a circular saying that they should plan for an imminent hike in prices of various Maruti models and followed it up with up to Rs 7,000 increase in prices of its Omni vans earlier this week.

Mal said the company has targeted to sell 4.75 lakh vehicles next fiscal, about 18 per cent higher than the current fiscal's expected sales of over four lakh vehicles.

"Our objective of market expansion has been achieved with the sales of over 2.29 lakh vehicles in just seven months of the current fiscal. This has given us the enthusiasm to sell 4.75 lakh vehicles in the next fiscal," he said.

The company's move to hike prices were aimed at maintaining its bootomline which declined by about 20 per cent to Rs 522 crore in 1998-99 againts Rs 652 crore in the previous fiscal.

The car market leader Maruti, with a share of 70 per cent, had effected a price hike of up to Rs 10,000 on its various popular models only in September and the proposed hike is due to lack of `profit margin' for absorption of extra costs in the competitive car market.

Maruti had earlier said that its thrust for meeting emission norms would go as per the government direction but "this will mean an additional impact of perhaps Rs 25,000 Rs 30,000 per car for emission compliance which will be mandated all over the country at different points of time.