The Indian car market has been hit badly by the falling value of the rupee, which has forced auto makers to increase prices of their vehicles despite the slow demand. In the recent past, numerous auto makers have announced an increase in prices to protect their profit margins. Toyota Kirloskar Motors, the Indian subsidiary of the Japanese firm, announced that it would hike prices of its popular models by up to Rs. 24,000 from September 21, 2013. According to sources, such a step has been taken so as to counter the falling rupee value and high cost of raw materials.
The price increase, about 1.50 per cent, would be seen in the company's key models like Innova, Etios, Etios Liva and Corolla Altis. As per reports, the company was compelled to take such a step since it had no other option than hiking prices so to balance the losses it had been suffering due to the economic crisis.
Toyota Innova, one of the most successful models by the firm, presently has a price range of Rs. 9.77 lakh to Rs. 14.42 lakh. After the implementation of the new price list, it will become costlier by Rs. 7000 to Rs. 11,000. It is equipped with 2494 cc 16 valve DOHC diesel engine giving out 100.6 bhp at 3600 rpm and a torque of 200 Nm at 1400 rpm. The other variant is powered by a 1998 cc 16-Valve DOHC VVT-i petrol engine that churns out 130.2 bhp at 5600 rpm and peak torque of 181 Nm. Corolla Altis, a popular sedan in the domestic market, will see a rise of Rs. 11,000 to Rs. 24,000 from the current rate of Rs. 11.74 lakh to Rs. 15.89 lakh. It is equipped with 1798 cc 2ZR-FE, four-cylinder in-line engine that generates maximum output of 138.1 bhp at 6400 rpm and torque of 173 Nm.
Similarly, compact sedan Etios has been made costlier by Rs. 4,000 to Rs. 8,000 from its existing price range of Rs. 5.45 lakh to Rs. 8.15 lakh. Etios petrol runs on a 1496 cc four-cylinder DOHC petrol engine that gives maximum power of 88.8 bhp at 5600 rpm and peak torque of 132 Nm along with a mileage of 16.78 kmpl. The 1364 cc SOHC,D-4D engine powered Etios delivers a maximum power of 67.1 bhp, torque of up to 170 Nm and a mileage of 23.59 kmpl.
The other model, Etios Liva, would be more expensive by Rs. 4,500 to Rs. 8,600 from its current price range of Rs. 4.46 to Rs. 6.59 lakh. There are two variants of the Etios Liva in the market, which includes a 1.2-litre four-cylinder petrol engine variant and 1.4-litre diesel version. The petrol variant gives out a mileage of 17.71 kmpl and the diesel variant renders a fuel-economy of 23.59 kmpl. All these price hikes will be applicable from the 21st of September.
In the past month, price hikes have been observed by other automobile firms like Ford India, Mercedes-Benz, General Motors and BMW. Ford India hiked prices by 1-5 per cent on few of its models whereas Mercedes-Benz raised prices on its entire range by 4.5 per cent. General Motors India increased prices by Rs. 10,000 on three of its models and BMW too has increased rates by 5 per cent on all its models distributed in India including the Mini. All firms have stated that the weakened economy has left them with no option than to take such a step.
