Toyota To Hike Prices By 1-3 Per Cent

Published: Tuesday, December 6, 2011, 12:51 [IST]

The fluctuating currency market has finally taken a huge toll on Japanese carmaker Toyota Kirlosakr Motor. The Indian subsidiary of Toyota has announced a price hike ranging from 1% to 3% and the price hike will be effective from 1st January. The value of the Rupee has been reducing consistently and in the mean time the Japanese Yen has also strengthened causing an increased losses to Toyota Kirloskar.

The carmaker which was absorbing the losses so far has decided to pass on some of the additional costs to the consumer. The biggest price hike will be to the Fortuner SUV according to Toyota Kirloskar Deputy Managing Director (Marketing) Sandeep Singh. He said: “ Although we have not finalised the exact amount of hike for each models, the highest will be for our SUV Fortuner and it will be about Rs 50,000."

Other Toyota models that will see a price hike will be the Etios, Etios Liva, Corolla and the Innova. Spaking about the price hike, Mr Singh stated: “ 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."

Toyota has decided to increase prices only in January considering the fact that it has already increased prices thrice this year. The effective price hike so far has been a whopping 5 per cent. The new price hike will mean Toyota cars will be 8 per cent more expensive than January 2010. If you were planning to buy a Toyota, December will probably be the best time to buy one.

Toyota has smartly made the announcement of the price hike one month in advance so that it can push more sales this December. This will not only benefit the buyer who will pay less for the car but also boost Toyota's sales.

The Liva is sold at Rs 3.99 lakh-Rs 5.99 lakh. The Etios is priced at Rs 4.99 lakh-Rs 7.87 lakh, while the Corolla Altis is available between Rs 10.63 lakh and Rs 14.75 lakh. The company sells the Fortuner at Rs 20.45 lakh, while the Innova's prices vary from Rs 8.48 lakh to Rs 12.81 lakh. (All Prices ex-showroom price Delhi)