In a bid to reduce the adverse effects of the depreciating value of rupee, the Japan based automaker; Toyota Kirloskar Motor has joined the league of automakers who have pronounced rise in prices of their existing product portfolio. It is expected that the company will be surging the prices of its models by around 2 percent that will provide some relief amidst mounting pressure on prices in the industry.
The value of rupee has been constantly diminishing as against the value of dollar since the last few months and has totalled at all time low of Rs. 56.38 as against a dollar.
The company had earlier affirmed that the decline of every rupee in comparison to a dollar, it suffered a loss of Rs. 90 crore approximately on annual basis. Toyota Kirloskar Motor is said to have suffered a total loss of Rs. 60 crore in the last four months with an average loss of Rs. 15 crore per month.
Mr. Sandeep Singh, Deputy Managing Director – Marketing, TKM, was quoted as saying, "There is a tremendous pressure on price due to the rupee depreciation. We are unable to hold on to the existing prices of our vehicles and there will be a hike in prices within a day or two."
Mr. Singh also said that the company will announce a 1 to 2 percent hike since the burden of price rise cannot be entirely shouldered by the buyers as currently, the market conditions seems to be sensitive.
The automaker is however likely to refrain the petrol powered Toyota models from the forthcoming price hike since the demand for petrol run cars is increasingly plunging down owing to the fuel price rise.
