Toyota Kirloskar Motor is to increase prices of its vehicles by up to 3 per cent from January 1, 2017, prompted by an increase in cost of manufacturing and an upward movement of foreign exchange.
“There has been an increase in pricing of raw material commodities like steel, aluminum, 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. Another factor leading to higher input cost in our case is the appreciation of yen in the international market which has increased the cost of parts that we import from Japan,” said N. Raja, Director and Senior Vice President, Marketing and Sales at Toyota Kirloskar Motor.
“We do a periodic review of the prices of our products basis the above factors and 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 Rs 68 to the dollar, we have been pressured to increase the cost of our products,” Raja added.