Toyota Kirloskar Motor (TKM), the Indian arm of the Japanese automobile manufacturer Toyota has announced that it will be hiking prices across its car portfolio by 1.5 percent. The hike will come into effect from September 1, 2012. The move by the company is in response to the depreciation of the Indian rupee which has resulted in higher import costs.
The company had earlier hiked prices by 1 percent in June 2012 to offset losses being incurred due to the same reason. According to Mr. Sandeep Singh Deputy Managing Director (Marketing) TKM, the rupee depreciation is significantly affecting the company’s margins. Hence, the burden has been partially passed on to the customers, added Mr. Singh.
The company imports various auto components such as engines and transmissions for its product range in India. The fall in the value of the Indian rupee has pushed the import costs for the company to new highs.