Toyota Kirloskar Motors has announced that it will be hiking the prices of some of its models from April 1, 2019. The company said that till now it had been absorbing the additional costs through refinement in its production process, but the increase in the price of raw materials and the sky rocketing input costs has made it difficult for the company to contain the costs of its vehicles.
N. Raja, Deputy Managing Director,, said "Toyota Kirloskar Motor will increase the prices of some of its products effective 1st April 2019. We have been absorbing additional costs through a bouquet of cost reduction measures including refinement in the production process. However, considering the trend of continuous increase, we are constrained to pass on a small portion to the customers. The company will continue its efforts to contain costs and offer the best value to our loyal customers.
According to the Japanese carmaker, this increase is due to the increased production costs. Toyota has also said one of the major causes for the increase in production costs is the depreciation of the rupee, which has caused continuous pressure of increasing manufacturing costs. Toyota has also stated that the increase in the price of production is a ‘general industry phenomenon’.
The price hike will affect models including the Innova Crysta, Fortuner, Corolla Altis, Yaris, Etios, Etios Liva, Camry, Land Cruiser, Prado and Prius. Toyota is not the only company to announce a hike in prices, with BMW having also announced just last week that they would increase prices by up to 4 per cent for all their cars in 2019. Expect more manufacturers to make similar announcements in the near future as well.
The company has, however, not indicated the quantum hike of the increase in the costs of its cars and neither has it indicated on the models which are covered under this price hike.