Car maker Toyota said that it is going to increase the prices of its entire range of cars in Indian market by 1.5 percent. The new prices will come into effect from September 1stto compensate the losses due to rupee depreciation.
This is the second hike since June by Toyota Kirloskar Motor (TKM). It had already raised the prices by 1% then.
The decline of rupee had hit the company hard and is affecting Toyota’s margins. The Toyota motors have been holding this up for quite a long time but now they have been forced to pass this to their customers, according to the words from TKM Deputy Managing director for marketing, Sandeep Singh. He also added that the hike has not yet been finalized but it will be somewhere around 1.5 percent. The company is going to increase the prices of its entire range and the new prices will come into effect from September 1st.
TKM imports many of its critical parts such as transmissions and engines for its different models in India.
At present the Toyota’s compact car, Liva is priced at Rs. 4.10 lakh to Rs. 6.32 lakh while the Etios Sedan model is priced at Rs. 5.14 to Rs. 8.23 lakh.
Its SUV Fortuner is priced between Rs. 20.89 lakh to Rs. 22.04 lakh. All these prices are ex-showroom price of the vehicles in Delhi.
On June 1st this year, Toyota had already announced the price rise for selected models by 12 percent due to rupee depreciation. The company had raised the prices for diesel version of sedan Etios and multi-utility vehicle Innova.
Earlier the company had tried to rev up exports from India to reduce losses. The TKM is a joint venture between Japan’s Toyota Motor and Kirloskar Group, entered into the export market with its first consignment of Etios cars which were exported to South Africa in April 2012.
Toyota has planned to export about 20,000 units of Etios series per year.