Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Manufacturing/  Toyota to hike vehicle prices by up to 3% from 1 January
BackBack

Toyota to hike vehicle prices by up to 3% from 1 January

Toyota says it will increase prices of its vehicles by up to 3% from 1 January to offset increased input cost and consistent upward trend in foreign exchange rates

Another factor leading to higher input cost is the appreciation of the yen in the global market, which has increased the cost of parts that Toyota imports from Japan. Photo: BloombergPremium
Another factor leading to higher input cost is the appreciation of the yen in the global market, which has increased the cost of parts that Toyota imports from Japan. Photo: Bloomberg

New Delhi: Toyota Kirloskar Motor (TKM) on Monday said it will increase prices of its vehicles by up to 3% from next month to offset increased input cost and consistent upward trend in foreign exchange rates.

“There has been an increase in pricing of raw material commodities like steel, aluminium, 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," Toyota Kirloskar Motor director and senior vice president (marketing and sales) N. Raja said in a statement.

Another factor leading to higher input cost is the appreciation of the yen in the international market, which has increased the cost of parts that the company imports from Japan, he added. The price hike will be effective from 1 January 2017, the company said.

TKM currently sells a range of vehicles from hatchback Liva with starting price of 5.39 lakh to premium SUV Land Cruiser 200 tagged at .34 crore (ex-showroom Delhi).

Raja said the company undertakes a periodic review of the prices of its products on the basis of the above-mentioned factors to take necessary actions.

“We have been absorbing all the additional costs till now, thereby protecting our customers from the price increase. However, owing to continued pressure of high costs and foreign exchange rates remaining at high levels of above Rs68 against USD, we have been pressured to increase the cost of our products," he said.

However, ahead of the price hike, the company is undertaking a campaign offering benefits on road financing, EMI holidays like ‘buy now and pay in March 2017’ on all its models and a special EMI package of Rs22,999 in select models of Innova Crysta.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Dec 2016, 12:56 PM IST
Next Story footLogo
Recommended For You
Manufacturing Stocks
₹557.550.52%
ITC
₹4280.13%
₹2,987.85-0.37%
₹152.852%
Switch to the Mint app for fast and personalized news - Get App