From September, car prices of Toyota cars in India are set to increase by around 1.5%. This was announced by the company itself, which stated that this increase will affect all vehicles in their entire range offered in India. These price increases are unavoidable as the company has to balance rupee devaluation. Toyota Motors sells cars in India under Toyota Kirloskar Motors and this is the second time this year that the company is increasing their prices for the same reasons.
Rupee devaluation has affected all areas of manufacture to a large extent. Margins are on a downswing while auto companies are trying their level best to absorb these losses and not pass them on to customers. However, the situation seems grim. Kirloskar Toyota has taken this decision to increase prices marginally specially since the company has to resort to imports of many of their components and transmissions for their models produced in India. Price increases will come into effect from the 1st September 2012 and will affect Liva hatchback, Etios sedan, Innova MUV, Corolla Altis sedan and Fortuner SUV.
Sandeep Singh, Deputy MD, Toyota Kirloskar Motors, said, “The rupee depreciation has hit us very badly and it is affecting our margins. We are trying to hold this as far as possible. We are forced to pass on the burden partially to our customers. Although we have not finalised the quantum of the hike, it will be around 1.5 per cent.”
Toyota Kirloskar Motors registered a growth of 7% in July. The company sold 14,574 units in the month as against 13,592 units in July 2011. Sales of Innova saw a 39% increase in growth with sales touching 6,678 during the month as compared to sales in July 2011 which stood at 4,816 units. Fortuner sales too jumped by 24% to 1,316 units as compared to 1,060 units in the same month of the previous year.