Toyota Kirloskar Motor to hike prices of all models by up to 4%

Toyota Kirloskar Motor (TKM) has announced that its vehicles are about to get dearer by up to 4%. The increase in price will help the carmaker offset the higher manufacturing costs. The revised rates will come into effect from 1 January 2019.

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A statement issued by the company in this regard reads -

There has been an impact in the cost of manufacturing of vehicle primarily due to rupee depreciation. Toyota has been absorbing the additional costs all this while, protecting the customers from price increase. However, due to the continued pressure of high costs, we have to pass on a part of it to customers.

The frequent fluctuations in the global commodity prices and foreign exchange rates have impacted the input costs. While Toyota Kirloskar Motor has been absorbing the financial burden till now, it has finally decided to transfer a part of the additional cost to the customers.

With this, the company's entire range of vehicles, which includes the Etios Liva, Etios, Etios Cross, Yaris, Corolla Altis, Innova Crysta, Fortuner, Camry, Land Cruiser Prado, Prius, and Land Cruiser will see a minor increase in the ex-showroom price. Among these, the Toyota Innova Crysta, which has an average monthly sales figure of 6,499 units (May 2018 - October 2018), is the most popular model in the stable. TKM's production facility is located in Bidadi, Karnataka.

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In August 2018, it emerged that Suzuki Motor Corporation has planned to pump in USD 1 billion in Toyota's plant in Karnataka for the production of its vehicles. Toyota Kirloskar Motor is currently under-utilising its plant's annual manufacturing capacity. Maruti Suzuki India Ltd is expected to manufacture up to 1,50,000 units per annum at the shared facility.