Toyota Kirloskar & Mahindra and Mahindra have decided to increase the prices by 1.5-2 percent from next month. Appreciating yen and increasing raw material prices have hit the Japanese carmaker Toyota and Mahindra & Mahindra, respectively, resulting in their third price hike this year.
M & M, which sells vehicles such as Scorpio, Bolero and Verito in the domestic market, had raised prices by about 1.5 percent in January this year, followed by another upward revision of 1.5-2 percent in April.
Toyota Kirloskar’s import of components ranges between 30 and 65 percent, depending on the models. The company imports Camry, Prado, Land Cruiser and Prius models as completely built units (CBU). In the case of Etios Sedan and Liva hatchback models, the local content is 70 percent and the company is planning to take it up to 90 percent once the engine and gear box plant starts production, which will help it derisk itself from the currency fluctuation.
Toyota’s deputy managing director (marketing) Sandeep Singh, said, “We are increasing prices by up to 2 percent, except for the Etios. This is necessitated by the huge fluctuation in the currency, as we import key component from Japan.”