In a verge to tackle the rising manufacturing cost many carmakers venture into the New Year with increase prices. Following the footprints, Toyota Kirloskar Motor has announced it will increase the prices of its entire range by up to 3 percent effective from 1st January, 2017. A similar kind of price raise was also announced in December last year. According to Toyota, high prices of raw materials like steel, copper, and rubber have affected the input costs. In addition, the gratitude of Yen has further contributed to the cause and hiked prices of the components that company imports from Japan.
The carmaker has registered 10 percent boost in its domestic sales last month courtesy Innova Crysta and new Fortuner. The premium MPV has been clocking sales of 8000 units a month while the brute SUV Fortuner has already received 6200 bookings.
Director & Sr. Vice President, Marketing and Sales, Toyota Kirloskar Motor Mr. N. Raja, 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”.
The Japanese carmaker has just launched its new ‘Remember-December’ campaign which includes ‘Buy now, pay in March 2017’ initiative, 100 percent financing on-road prices of the cars and EMIs a brim as Rs. 22,999 on specific variants of Innova Crysta. Toyota’s current portfolio range from Rs. 5 lakh to Rs. 1.25 Crore for Land cruiser and brand has been showing constant growth in India. As the year comes an end, more carmakers are likely to announce price hike.