Toyota Kirloskar Motors, the Indian unit of Japan based leading car maker Toyota, said on Monday that it will be enhancing the price of its portfolio models by up to 3 percent from next month. The decision has been taken in a bid to pass on the burden of weakening rupee on the Indian customers.
This is the fourth consecutive price hike from Toyota in last one year, as it has already hiked the price of its portfolio cars thrice in the Indian market in April, July and then in October 2011. However, the latest car price hike from Toyota is the steepest among the all other previous hikes; as while it was increasing the prices by 1.5 to 2 percent earlier; the latest one is almost double at 3 percent.
Though the company is yet to decide upon the price increase for the particular portfolio models, it has said that the price of company’s popular Sports Utility Vehicle Fortuner will go up by as much as Rs 50,000 from next month.
In a statement given to PTI, Toyota Kirloskar Motors’ Deputy Managing Director (Marketing) Sandeep Singh said, "For the last three months, we have been absorbing the pressure of currency fluctuations. Now we have decided to pass on some burden to customers. We will raise the prices by 1.5-3 per cent from January 1." He added that generally the company raises prices by 1-2 per cent. However, the impact of rupee depreciation and yen strengthening is so much this time that TKM has to undertake such a steep hike for its products.
