Toyota to increase car prices by up to 3 per cent next month

Toyota Kirloskar Motor (TKM) will bring in a price hike of three per cent across all models in their range. This will be effective from January 2017.

The upward revision in vehicle prices is due to the rising input costs coupled with high prices of raw materials. The Dollar and Yen have seen an appreciation in the last few months adding pressure on the company. In addition, the automaker's profit has been hit by the rising costs of commodities like steel, aluminum, copper and rubber. Also, Toyota imports many components from Japan and the inflation in foreign exchange rates in addition has affected their overall cost of production.

N. Raja, Director and Senior Vice President, Marketing and Sales, Toyota Kirloskar Motor said, "There has been an increase in pricing 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.

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 Rs 68 USD, we have been pressured to increase the cost of our products.”

Though the automaker has not specified the product-wise revision in prices, this upward trend in ex-showroom prices will be applicable right from the carmaker's entry-level Liva to their flagship Land Cruiser.