Automakers in India are preparing to venture into the new year with increased prices. Toyota Kirloskar Motor has now announced that it will increase the prices across its model range by up to 3% starting from January 2016.
The company’s director and senior vice-president for sales and marketing, N Raja, stated that the hike is aimed at offsetting the rising input costs and unfavorable foreign exchange fluctuations. He added that the company has been holding back on the price hike or a long time, but the input costs, electricity, maintenance and foreign exchange have increased further to hold back the price any further
The Japanese automaker’s current Indian portfolio ranges from around INR 5 lakhs (Etios Liva) to INR 1.29 crore (Land Cruiser). The company is in the process of finalizing model-wise price hikes. Speaking further, the reason for this price hike are – increasing cost of manufacturing vehicles and a consistent upward trend in foreign exchange rates.
In 2016, Toyota India launched two of their most awaited cars – the new Innova Crysta and Fortuner. Both cars have been off to a good start in India. Innova Crysta has been registering sales of 8,000 every month while the booking orders of newly launched Fortuner has already crossed the 6,200 mark.
As 2016 comes to an end, we expect more automakers to resort to upward revision of prices in a bid to maintain their bottom line. Expect almost every car maker to announce price hike soon.