Toyota Kirloskar Motor has announced that there’ll be up to 3% hike on its products, effective from 01 January 2017. This move is in line with the general industry trend prompted by increasing cost of manufacturing vehicles and a consistent upward trend in foreign exchange rates, the company said in a release.
Expressing his views on the price hike, N. Raja, Director & Sr. Vice President, Marketing and Sales, Toyota Kirloskar Motor said, “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.
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 USD, we have been pressured to increase the cost of our products”, He added.
The company witnessed a growth of over 10% in domestic sales for the month of November 2016, owing to the response the recently launched new Fortuner has received.
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