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Toyota plans to hike vehicle prices next month - Mr Raja

Auto News - Published on Thu, 19 Apr 2018

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PTI reported that Toyota Kirloskar Motor (TKM) is planning to increase vehicle prices from next month in order to partially offset rise in input costs. The company, which is a joint venture between Japanese auto major Toyota and Kirloskar group, currently sells a range of vehicles from hatchback Etios Liva with price starting at INR 5.49 lakh to luxury SUV Land Cruiser tagged at Rs 1.41 crore (ex-showroom Delhi) in the country.

Mr N Raja, TKM Deputy Managing Director, said that "Challenges in terms of rising input costs have been there. We are holding on to it (price increase) for some time now. Shortly, we will be doing it. It could be even as early as next month."

Mr Raja said that the company is currently working on the quantum of price hike.

Luxury car makers such as Audi, JLR and Mercedes-Benz have hiked prices ranging between INR 1 lakh to INR 10 lakh from this month to pass on increase in custom duties.

When asked about sales growth in the current calendar year, Raja said the industry is expected to grow in the range of 8-9 per cent and TKM growth is also likely to be in that range.

He added that the company expects hatchback and sedan segment to grow better this year as compared with last year (2017).

He said that "Last year passenger car sales growth was 3-4 per cent, but this year we expect the sedan and hatch segment to grow by around 6-7 per cent on an average."

Mr Raja said growth, however, will depend on various factors like interest rates, fuel pricing and monsoon.

He said that "Demand generation from rural segment was robust last year. Our expectation is higher side of single digit so 8-9 per cent growth is possible this year."

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Posted By : Rabi Wangkhem on Thu, 19 Apr 2018
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