Toyota could hike car prices by 1.5 percent from January 2012

2012 Toyota Fortuner SUV facelift

The depreciating value of the Indian rupee has left auto makers with no option but to hike the prices of their products. Toyota Kirloskar India could now join other car manufacturers like Maruti Suzuki and General Motors by hiking the price of their cars. The price rise is expected to be in the range of Rs 5000-50,000 depending on the model. Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motor said that his company has finally taken the decision to increase the price of their cars.

“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 to three per cent from January 1,” Sandeep Singh said.

Car makers have been bearing the increased costs for the last three months and now Toyota has decided to pass on the burden caused due to the fluctuation in the rupee value to its customers. The decision to hike prices has already been taken but by how much is still now clear. The high-end models like the Toyota Fortuner might get dearer by as much as Rs 50,000. The new rates are expected to be finalized in second half of this month. Those auto makers who import certain parts into the country have been the worst affected by the depreciation in the rupee value.

Singh also added that Toyota would normally hike prices by 1-2 percent but this time the rupee depreciation and the strengthening yen has made things much difficult for the company. This could result in much higher hike than expected. The new year then might not bring cheer if you are planning to buy a Toyota. That said, 2011 would go down in history as one of the toughest years for the automobile sector in India.

Via Business Today

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