Just a few hours back we reported that Car makers like Toyota and General Motors are going to announce price hike for their car line up, and now we have a confirmation that Toyota Kirloskar Motors (TKM) has finally announced a price hike of up to 2 per cent for their cars.
Mr. Sandeep Singh, Deputy Managing Director (Marketing), TKM, says: “We cannot pass on the entire impact of Rupee depreciation as the market is tough at the moment. What we are looking at is a hike in the range of 1 – 2 per cent”.
“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”, he also added.
According to the company, for a fall of every single Rupee against Dollar, TKM loses about Rs. 90 Crores annually. Lately, due to the sudden fall of Rupee, the company has already lost about Rs. 60 Crores in just last 4 months.
Mr. Hiroshi Nakagawa, MD and CEO, TKM, resembles the present situation of Indian car market by saying that it has slowed down and become tough in the recent past mainly due to the petrol price hike making customers postponing buying. “But within a couple of months, it will become normal. The fundamentals of the Indian market is very strong for the future” he also added. Just like many of us, he also thinks that the price difference between petrol and diesel “is not healthy” and he expects the Government to do something about it by “taking some good action”. Since the global fuel prices are market driven, he thinks diesel price in India should be de-regulated.
Mr. Nakagawa has denied any plans for producing diesel engines in India in order to meet market demands.
News Source: Economic Times