Toyota has announced that they will increase the prices of their cars by up to 3 per cent from January 2017. The price hike is being attributed to rising input costs and the inflating foreign exchange rates.
Toyota's profits have not only got hit, but the appreciating Dollar and Yen has also added peer pressure on the company. Their input costs have gone up due to the increasing prices of raw materials. Commodities like steel, aluminium, copper and rubber are essential components for the carmaker and the hike in its prices have increased their input costs. The inflation in foreign exchange rates isn't helping them either as the company has to import many parts from Japan.
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."
The revision in all car prices across Toyota’s portfolio will take place next month, right from the entry-level Liva to the flagship Land Cruiser. The revised prices will be available on the carmaker's official website and variant-wise prices will also be available with dealers in the New Year.
