India's second-biggest carmaker Hyundai Motor India on Friday said it would increase prices by almost 3 per cent this month.

"First, we will increase the price of Accent as the car has been badly impacted by rising input costs. Price of Santro will also be jacked up," HMIL President B V R Subbu said.

Though the quantum of price hike was being worked out, input costs had gone up by almost three per cent, he said.

The mid-sized Accent has been badly hit by rising steel costs, while the compact car Santro has been relatively less impacted.

Since luxury sedan Sonata has high import content, rising input costs have been neutralised with the cut in excise duty.

Last time, HMIL had effected a price hike in May 2003 by 3.5 per cent.

Almost all the carmakers, including market leader Maruti have announced to jack up prices this month due to spiralling input costs like steel and rubber.

Utility vehicle maker Mahindra and Mahindra has already increased prices.