Toyota Kirloskar Motor is mulling price hike of its vehicles to offset impact of adverse foreign exchange and rising input costs.
“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,” TKM Director and Senior Vice President N Raja told PTI. When asked how soon the company will take a decision on price hike, he said: “It could be the end of this month or very early next month.”
On the expected quantum of price hike, he said: “It is usually 2-3 per cent and this time around it could be the same.” He said the appreciation of dollar and yen is around 10-15 per cent. The company imports components from Thailand and Japan, he added.
Currently, TKM sells a range of vehicles starting from entry level hatchback Liva to top end SUV Land Cruiser LC 200 priced between Rs 5.13-1.34 crore (ex-showroom Delhi). Already, companies like Maruti Suzuki India and Hyundai have increased price of their vehicles.
When asked about the impact of the ongoing unrest in Karnataka due to Cauvery issue, Raja said the company’s plant at Bidadi near here has been shut Tuesday. “We will have to evaluate the situation before taking further decision,” he added.