Toyota Kirloskar Motor (TKM) today said it will increase prices of its vehicles by up to 3 per cent from next month to offset increased input cost and consistent upward trend in foreign exchange rates.
"There has been an increase in pricing of raw material commodities like steel, aluminium, 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," Toyota Kirloskar Motor Director and Senior Vice President (Marketing and Sales) N Raja said in a statement.
Another factor leading to higher input cost is the appreciation of the yen in the international market, which has increased the cost of parts that the company imports from Japan, he added.
The price hike will be effective from January 1, 2017, the company said.
TKM currently sells a range of vehicles from hatchback Liva with starting price of Rs 5.39 lakh to premium SUV Land Cruiser 200 tagged at Rs 1.34 crore (ex-showroom Delhi).
Raja said the company undertakes a periodic review of the prices of its products on the basis of the above-mentioned factors to 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 against USD, we have been pressured to increase the cost of our products," he said.
However, ahead of the price hike, the company is undertaking a campaign offering benefits on road financing, EMI holidays like 'buy now and pay in March 2017' on all its models and a special EMI package of Rs 22,999 in select models of Innova Crysta.