Toyota Kirloskar Motors, the Indian division of the Japanese carmaker has announced a price hike of 1.5 per cent of its entire range of cars. The company has stated that the price hike was necessary to placate the losses resulting from the low value of the Indian Rupee.
Toyota imports several components from Japan as well as from Malaysia. The severe depreciation of the Indian Rupee in recent months has resulted in imports becoming costly adding to the production costs. Although Toyota does have a manufacturing plant near Bangalore some components are still not manufactured in India.
Toyota's price hike will be effective from 1st September across the entire product range. This is the second time Toyota has increased its car prices since June. The previous price hike by Toyota was at 1% and the reason cited then was also the depreciating value of Indian Rupee.
Toyota Kirloskar Motor Deputy Managing Director Sandeep Singh has stated that the falling rupee had hit Toyota quite hard and it was being forced to pass on some of its burden to its customers.
Toyota currently sells the Etios Liva, Etios, Corolla Altis, Innova, Camry, Fortuner, Land Cruiser premium SUV in India. The company has not stated the exact price hike for individual models but has only stated it will be around 1.5%. The new prices will be clear by 1st September.