Toyota Kirloskar Motors has announced a hike of 1-2 percent in the price of its car models in India which will be effective from June 2012. The price hike is in response to the high input costs being incurred by the company due to the depreciation of the Indian rupee.
Mr. Sandeep Singh Deputy Managing Director (Marketing) Toyota Kirloskar Motor stated that the company is unable to absorb the increase in costs and is therefore transferring part of the increase to the customers.
In the period of January to April 2012, the company has reportedly lost a total about Rs 60 crore due to the depreciation of the Indian rupee. Moreover, the sales of the company have taken a hit due to the hike in petrol prices in the month of May 2012. Mr. Singh has stated the possibility of sparing the petrol vehicles from the price hike to maintain the sales.