Toyota says that this decision has been made to offset the rising manufacturing costs and a constant upward trend in foreign exchange rates.
Toyota Kirloskar Motor, the Indian subsidiary of Japanese carmaker, has announced a price hike across its range in India. This move will make the Toyota cars 3% costlier than now. One must note that the revised prices will be effective from January 1, 2017. The company says that this decision has been made to offset the rising manufacturing costs and a constant upward trend in foreign exchange rates.
Besides this, the Japanese automaker has also announced the ‘Remember December’ campaign across the nation. Under this scheme, the company will offer 100% on road financing. The carmaker has also come up with ‘EMI Holidays’ under which buyers can buy any Toyota car instantly and pay in March 2017. There is a special EMI package of as low as Rs. 22,999 in select variants of Innova Crysta.
Buyers can avail benefits till December 31, 2016, though they might vary dealer-wise. Toyota claims that these new schemes will help customers purchase car with ease during the demonetisation period. In November 2016, Toyota India has registered a growth over 10% in domestic market, thanks to the new Fortuner, Innova Crysta and new Platinum Etios.
“The Remember December campaign is not just about offering benefits on our products but it is also an effort from our side to meet the needs of the customers to help them overcome difficulties caused due to demonetization. Not just that, we are also accepting cashless payments through various channels of e-transfers to ensure smooth & hassle free buying experiences for our customers thus adding more value to the customer experience and meeting their expectations,” added Mr. N. Raja.
Commenting on the price hike, Mr. 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 further.