Toyota Plans To Hike Prices For Its Offerings In India

Post the Union Budget that was released earlier this year, all car manufacturers were forced to the hike prices for their offerings in India due to the infrastructure cess imposed by the government. Soon after, we witnessed Maruti Suzuki increasing prices for some of its best sellers in the country by up to Rs 20,000. Hyundai followed Mauti’s footsteps, raising prices for its offerings by Rs 20,000.

Now Toyota has announced that it will revise the price list of its offerings in India, which could see a price hike by up to 3 per cent across its product portfolio. The prices will come into effect either by the end of September 2016 or early October 2016.

N Raja, Director and Senior Vice President, Toyota Kirloskar Motor, reportedly said, “There has been increased pressure due to appreciation of yen and dollar. Besides, steel costs have gone up by 15 per cent and we import components from Thailand and Japan. We have been absorbing the cost but we will be reviewing it soon.”

Toyota launched the new Innova earlier this year and introduced the facelifted versions of the Etios and Etios Liva on September 13, 2016. The Japanese carmaker is likely to replace the existing Fortuner with a new model by the end of this year. With hiked prices, Toyota will inevitably encounter difficulty capturing a good market share, especially in the hotly-contested hatchback and compact sedan segments.