With effective from 21st September Toyota cars will be dearer to Indian customers as price hike on key models was announced yesterday. However, this does not come to Indian auto customers as a surprise. The auto maker has stated due to depreciating rupee, higher input costs and inflation, they are forced to pass on the higher cost burden to customers. As per the new price revision, Toyota Etios will cost between Rs. 4,000 - Rs. 8,000, Etios Liva between Rs. 4,500 - Rs. 8,600, Innova Rs. 7,000 - Rs. 11,000 and Corolla Altis Rs. 11,000 - Rs. 24,000.
At present economic conditions is not favourable in India and worldwide. Increasing prices on key models in such situation doesn’t sound effective. But it’s too early to do the guesswork now, as track record shows even when the auto market was sliding for straight nine months, luxury brands like Audi, Jaguar, Mercedes and BMW grew positively in India.