In a move to tackle the increasing manufacturing cost of vehicles and constant upward movement of foreign exchange rates, Toyota Kirloskar Motor has announced that it will increase prices of its entire product portfolio by up to 3 per cent from January, 2017. A similar price hike was also announced in December, 2015.
Expressing his views on the price hike, N. Raja, Director & Sr. Vice President, Marketing and Sales, Toyota Kirloskar Motor said, “There has been an increase in prices of raw material commodities like steel, aluminum, copper and rubber over a period of the last six months and this puts a lot of pressure on us as all this has been leading to a higher input cost on our end. Another factor leading to higher input cost in our case is the appreciation of yen in the international market which has increased the cost of parts that we import from Japan.”
Toyota Innova Crysta
(Toyota has sold over 50,000 units of the Innova Crysta till date)
Toyota has also announced a new ‘Remember December’ campaign which will offer benefits such as 100 per cent financing on the on-road prices of the cars and attractive EMI options such as ‘Buy now, pay in March, 2017’ and EMIs as low as ₹ 22,999 on particular variants of Innova Crysta.
Expressing concerns on a higher foreign exchange rate, N.Raja added:
“We do a periodic review of the prices of our products basis the above factors and take necessary actions. We have been absorbing all the additional costs till now thereby protecting our customers from the price increase. However, owing to continued pressure of high costs and foreign exchange rates remaining at high levels of above ₹ 68 for every USD, we had to increase the cost of our products”
(Toyota has also garnered over 6,200 bookings for the new Fortuner)
The company reported a growth of over 10 per cent in the domestic sales last month. Toyota has managed to sell over 50,000 units of its Innova Crysta and it also claims that the Fortuner has received over 6,200 booking since its launch. We do expect other car manufacturers also to increase its car prices with the start of new calendar year.