Toyota India announces a price revision for its product lineup wef October 1, 2021
As we approach Q4 of 2021, it’s that the of the year wherein auto manufacturers take close look at vehicle market prices. With cost commitment for manufacturers on the rise, small regular price hikes across the spectrum are part of an established pattern in the auto industry. With the Indian auto market still in a state of flux, down from a trend a year ago, a price hike trend is expected.
Following an elaborate and all encompassing lockdown that brought all auto sales to a standstill, the auto industry woke up to an unending parts shortage problem. Add to this regular price fluctuations in manufacturing. TKM (Toyota Kirloskar Motor) will discontinue the current price list with effect from 1st October, 2021 and all orders placed thereafter will be on the new price list.
Toyota Price Hike Oct 2021 – Increase in input costs
“TKM today indicated that the company will realign the prices of its models, with effect from 1st October 2021. This hike is necessitated to partially offset the increase in input costs. The overall price increase has been tapered down considering the impact on our valued customers. As a customer-centric company, we remain committed to cater to the ever-evolving needs and requirements of our customers by consciously minimizing the impact of rising costs on consumers.”
The announcement is true for all of TKM’s cars. This includes Glanza, Urban Cruiser, Innova, Fortuner, Camry and Vellfire. The decision comes after considering rising input costs for manufacturers.
Such decisions are not taken lightly and such a revision represents a small margin on each car model. This week, Toyota India announced the discontinuation of its Yaris premium hatch. For now, this further contains its limited market lineup.
Auto manufacturers remain confident that the a regular revision of pricing strategy helps provide a better value proposition to customers by softening the price burden. Rise in costs are also indirectly related to fuel price increases, rising raw material prices, and rising man-hour necessitated to maintain quality control over products resulting in higher labour costs. The effort at all times is to ensure product pricing remains reasonable.
Development of core businesses of automotive component manufacturing and supply in India over the years helps manufacturers maintain operational excellence and agility even in adverse economic conditions.
TKM continues to focus on enhancing its product portfolio with attractive offerings for both consumers and business partners. Its commitment to provide quality products and services to customers will see the company focus on an product lineup expansion. On the cards, there should be a couple of new additions to the portfolio. For starters, one can look forward to the launch of Toyota Belta. While Toyota enjoys a much larger market share in some overseas markets, sales in India doesn’t put it on the podium in India.