Japanese automaker Toyota has decided to increase the price of its vehicles by up to 3 percent from January 1, 2017. This price hike is due to the increase in manufacturing costs and an upward movement of foreign exchange.
N Raja, Director & Sr. Vice President, Marketing and Sale, 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 the yen in the international market which has increased the cost of parts that we import from Japan."
He added, "We do a periodic review of the prices of our products on the basis of 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 the continued pressure on high costs and foreign exchange rates remaining at high levels, we have been pressured to increase the cost of our products."
The automaker has also announced the Remember December Campaign to help customers to overcome cash crunch caused due to demonetisation. This campaign offers 100 percent on road financing, buy now and pay later (March 2017) and an EMI package of as low as Rs 22,999 on select Innova Crysta models.
N Raja added, "The Remember December campaign is not just about offering benefits on our products but it is also an effort from our side to meet the needs of the customers to help them overcome difficulties caused due to demonetisation.
"Not just that, we are also accepting cashless payments through various channels of e-transfers to ensure smooth & hassle free buying experiences for our customers thus adding more value to the customer experience and meeting their expectations."
In the month of November, the Japanese automaker witnessed a growth of over 10 percent in domestic sales. This increase due to the overwhelming response the recently launched all-new Fortuner has received.