Toyota Kirloskar Motor will raise the prices of entire range of locally-produced vehicles by up to 3%, one of its steepest rate hikes, from January 1 due to the weakening of rupee against the yen.
"For the last three months, we have been absorbing the pressure of currency fluctuations. Now we have decided to pass on some burden to customers. We will raise the prices by 1.5-3% from January 1," Toyota Kirloskar Motor (TKM) Deputy Managing Director (Marketing) Sandeep Singh told PTI.
The company will increase the prices of all vehicles manufactured in India and the quantum of hike will vary from model to model. The new rates will be finalised by third week of this month, he added.
"Although we have not finalised the exact amount of hike for each models, the highest will be for our SUV Fortuner and it will be about Rs 50,000," Singh said.
This will be one of the steepest hikes that the company will undertake in the recent years.
"Generally we raise prices by 1-2%. However, the impact of rupee depreciation and yen strengthening is so much this time that we have to undertake such a steep hike for our products," Singh added.
TKM has already increased the prices of its vehicles thrice this year, in April, July and October, by a total of around 5%.
The joint venture company between Japan's Toyota and India's Kirloskar Group produces hatchback Liva, sedans Etios and Corolla Altis, sports utility vehicle Fortuner and multi-utility vehicle Innova in India.
The Liva is sold at Rs 3.99 lakh-Rs 5.99 lakh. The Etios is priced at Rs 4.99 lakh-Rs 7.87 lakh, while the Corolla Altis is available between Rs 10.63 lakh and Rs 14.75 lakh.
The Richest Places In The Universe
The company sells the Fortuner at Rs 20.45 lakh, while the Innova's prices vary from Rs 8.48 lakh to Rs 12.81 lakh.
All the above rates are according to TKM's official website, and are ex-showroom Delhi.
Rupee depreciation is putting severe pressure on firms importing substantial amount of components from overseas. The domestic currency fell by 12 paise to Rs 51.32 per US dollar in morning trade on the Interbank Foreign Exchange today.
Industry estimates show that compared to about 50 paise a yen last year, one has to shell out 60 paise now for per yen.
Other car-makers, including Maruti Suzuki India and General Motors India, are also mulling a hike in prices of their products to offset the rising cost of component imports due to the depreciating rupee. These firms are at present evaluating the quantum of price increase to be effected.