"While the cost-push factors are expected to result in an upward pressure on prices in the range of Rs 25,000, the company is yet to decide the extent that can be passed on to the customers," Hyundai said in a statement here today.

The company also said it would start production and delivery of Euro-II compliant cars from this month in view of the supreme court order last week laying norms for registration of cars in the national capital region (NCR), the biggest market for cars in the country.

"Our plan to introduce the Euro-II compliantSantro is a natural consequence of our resolve to provide the latest and the best automotive technology to the Indian market," Hyundai Motor India's Managing Director Y S Kim said.

Other small car manufacturers like Daewoo and Telco also claim to be either Euro-I or Euro-II compliant, leaving out only Maruti. Hyundai said the 12-valve, 4-cylinder engine that powers the Santro model has been engineered to meet the Euro-II emission norms.

The process of obtaining certification from the ARAI, Pune, the official body which certifies the vehicle emission levels, would be taken before mass production starts, the company said.

In a statement, Daewoo Motor India Ltd (DMIL) Managing Director S G Awasthi also claimed "all our products already in the market namely Matiz, Cielo and Nexia meet Euro-II pollution norms".

The apex court's decision is in the interest of the people at large and lays stress on environmental pollution, he said adding the industry has to respond to such situations.

The market leaderMaruti which has a market share of over 80 per cent in the passenger car market, is trying hard to meet Euro-I norms and subsequently to attain Euro-II norms.

The company has already tied up with Denso of Japan to produce multi-point-fuel-injection (MPFI) system, an additional part of the engine to conform to stringent emission norms, but according to earlier schedule, production would only start in January next year.

In a recent order, the apex court has ordered to ban registration of all private non-commercial vehicles not conforming to Euro norms in the national capital region.