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Toyota Kirloskar to mount up prices by up to 2 percent

Auto-giant, Toyota Kirloskar Motor stated that they are going to hike the price of its vehicles by up to 2 % within one or two days due to diminishing value of Indian rupee in the international market. Speaking about the instant price hike, Sandeep Singh, Deputy Managing Director for Marketing, Toyota Kirloskar Motors stated that the company is facing high pressure on the price due to depreciating value of rupee and they are not in a state to continue with the current prices, therefore, they will increase the prices of its vehicles within one or two days.

He added that they cannot pass the entire burden of decrease in rupee value on the buyers as the market scenario is very tough and they would therefore increase the prices by a margin of 1 – 2 percent. Earlier, the company stated that with the decrease of 1 rupee against 1 dollar, there is a loss or around 90 crores annually.

Toyota Kirloskar Motors has incurred loss of around 15 crores every month, accounting for total of around 60 crores in last four months. In past few months, INR has been losing its value against the dollar and it resulted to the lowest level of 56.38 rupees in comparison to 1 dollar. The official said that as the demand of petrol vehicles is not much due to hike in petrol prices, the company might give some relaxation on price hike in order to stabilize the demand of petrol cars.

In the domestic market, auto-grand Toyota Kirloskar sells wide range of car models from Toyota Etios Liva hatchback to premium crossover, Toyota Land Cruiser.

Speaking about the current market conditions, Hiroshi Nakagawa, CEO and Toyota Kirloskar Motors Managing Director stated that currently there is a slowdown in domestic auto-market and also the consistent increase in petrol prices have led the buyers to postpone their plans for car purchase. But he added that within two months conditions are expected to be okay. He also commented that the Indian auto-market has got a bright future ahead.