Toyota Kirloskar Motor has been contemplating a price hike on all its car models. This is due to the appreciation of the dollar and the yen and rising in prices of various components imported from Thailand and Japan.
"There has been increased pressure due to appreciation of yen and dollar. Besides, input costs for commodities like steel have gone up. We have been absorbing the cost but we will be reviewing it soon," said N Raja, Director and Senior Vice President, Toyota Kirloskar Motors.
N Raja also hinted that the price rise could take place by late September or early October before the festive season. The price hike usually was around 2 to 3 percent and it could also be the same this time, said Mr. Raja.
There has been a 10 to 15 per cent appreciation in the dollar and yen vis-a-vis the Indian rupee. Steel prices had also gone up to put pressure Toyota’s profits. The import of components too from Japan and Thailand has also added to the input costs.
It could be remembered that market leaders Maruti Suzuki and Hyundai had also increased prices due, more or less, to the same reasons. The price hike by both these market leaders had also been steep.
The Toyota is also likely to take a call on its future plans due to the unrest in Karnataka after the Cauvery issue. During the riots, political outfits in Karnataka set fire to many parts of Bangalore and Karnataka including buses and depots. The riots and the 144 imposed in Karnataka causes losses to the tune of Rs. 22,000 crores.
Companies had to face severe losses, as people couldn’t get to work nor leave houses for purchase of items for even daily use. So, in order to curtail the losses and avoid future mishaps and losses, many companies, especially IT firms, expressed willingness to move out of the city due to the unfavorable business climate.
So, N Raja said that the company’s Bidadi plant had been closed shut for the day and the situation would be elevated to their Japanese bosses. Then, further decision would be taken, said N Raja.