Toyota to Hike Prices from January, All You Need to Know

Toyota Kirloskar Motor announced that starting January 2022, it will raise prices across its entire product portfolio to mitigate the impact of rising input costs. The Indian-Japanese joint venture sells a variety of models in the country, including the Glanza, Urban Cruiser, Innova Crysta, and Fortuner. This year, India has seen one of the biggest price hikes due to purported input cost increase. Several firms, including Maruti Suzuki, Tata Motors, and Honda Cars, have already announced new rates beginning next month.

Another round of price hikes in the car industry comes in tandem with rising costs of various important commodities, such as steel, copper, aluminium, and precious metals.

"The price realignment is necessitated on the back of a sustained increase in input costs including raw materials. All efforts have been made to ensure that the impact of the cost increase has a minimum effect on our esteemed customers," TKM said in a statement, as reported by PTI.

The situation is further aggravated as manufacturers have been kept on their toes due to a delay in components procurement, which has resulted in production adjustments. Aside from the industry's reduced total volumes, this also forces the manufacturers to rethink the pricing.

Maruti Suzuki India, India's largest carmaker, also announced last week that it will raise the rates of its vehicles once more.

According to the firm, the price increase will take effect in January 2022, making it the fourth round in the last one year. In January 2021, the company announced a price increase of around 1.4 percent, 1.6 percent in April, and 1.9 percent in September. In an interview with CNBC-TV18 earlier this month, Shashank Srivastava, Maruti Suzuki's senior executive director of Marketing and Sales, noted that despite three price hikes this year, the entire cost increases have still not passed on to the consumers.

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"The cost pressures are huge and we haven't passed on the entire cost increases to the consumers yet, although we have had three price increases," he said.

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