Toyota Kirloskar Motors will initiate its second price hike for the year with effect from September 1. The hike which is likely to be 1.5 per cent is in response to the falling value of the Rupee against the Dollar. This is the second time that the Japanese automaker has hiked its prices this year; the previous hike was in June.
Commenting on the hike, Sandeep Singh, deputy managing director (marketing), said the depreciation had badly affected the company’s profit margins and they had been trying to put off the move as far as possible but were now forced to pass on the burden partially to the customers. He did not confirm the hike amount but said that it would be around 1.5 per cent.
Toyota imports many of its components including engines and transmissions, which is why it has been affected quite badly by the depreciation of the Rupee. However, with the holiday season nearing the company might be able to drive its volumes forward by way of special offers.
