The renowned auto firm, Toyota Motor Corporation has announced of its aim to increase its car prices by 1.5%. The other established firms which have followed suit are BMW, Audi AG, Mercedes Benz. The Indian subsidiary of Toyota has also raised its vehicle prices; the market conditions in India have been unfavorable with steep depreciation of Indian rupee. This has resulted in increase in inflationary costs. The past few months have noted a drastic decline of Indian currency against the dollar which is around 15%. The cost of auto components from overseas markets has also increased. To cater to wider consumer options, Toyota India has recently introduced Xclusive editions of Liva and Etios models, and has also worked on upgrades and with Vios and Innova.
The Deputy Managing Director in Commercial Operations and Marketing segment, of Toyota Kirloskar Motor, Sandeep Singh announced, ‘’Toyota sources around 35 to 40 percent of auto parts from its Etios series, Innova and Corolla Altis for Indian markets.’’
When the cost of Etios Liva is raised the vehicle will now be dearer by around Rs 4,500 to 8,600. The Etios Compact model will be pricier by Rs 4,000 to 8,000; the figures are higher for the luxury car Corolla Altis at Rs 11,000 to 24,000, and Innova by around Rs 7,000 to 11,000.
Toyota India is recognized for its amazing line up of luxury cars, from the Etios sedan, Fortuner SUV to the Camry hybrid. The Land Cruiser, Prado and Prius models are imported.
The critical market conditions in India, is the main reason for Toyota to hike prices of its central models. Recession has haunted Indian car markets for more than nine years, but the impact is harder now with the Indian rupee weakening by 15% versus the dollar. Other established firms like Hyundai are strengthening its export unit. Toyota is working on slight modification in the form of facelifts for its Vios and Innova models for wider customer options. The company has also recently launched Xclusive versions of Liva and Etios to commemorate the admirable profit sales generated by the two cars. This could also be an attractive strategy to gather more customers and increase its profit sale portfolio, since the Xclusive models are released with superior features at a higher price.
Other established firms are also working on facelifts and newer versions of existing models. Hyundai has recently launched the Grand i10 which is a grander version of current i10 built with superior style statements, and additional features. Maruti Suzuki has launched the Wagon R Stingray, in a boxier and stylish format compared to present Wagon R and is also equipped with extra features.
With companies working on modifications and facelifts and price hikes, one can imagine the extent to which the market conditions have weakened. Toyota India has worked on practical strategies to introduce greater new versions of its existing models. The Etios, Etios Liva, Corolla Altis and Innova are key profit players for the company, even with price increase, people will still opt to buy these models, the reason being the optimum luxury and comfort offered by these cars.
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