Toyota to hike prices by up to 2% from Oct 1 to offset rise in input costs

Automaker Toyota Kirloskar Motor (TKM) on Tuesday said it will increase prices of its entire model range by up to 2 per cent with effect from October 1 in order to partially offset the impact of rise in input costs.

The company, which is a joint venture between Japan's Toyota Motor Company and Kirloskar Group, sells a range of vehicles including Innova Crysta and Fortuner in the domestic market.

The company will realign the prices of its models, with effect from October 1, 2021, TKM said in a statement.

All company models except Vellfire would see an upward increase in prices from next month.

"This hike is necessitated to partially offset the increase in input costs. The overall price increase has been tapered down considering the impact on our valued customers," the automaker noted.

In the last one year, there has been a gradual increase in the prices of various essential commodities like steel and precious metals. It has led to increased input costs for the automakers.

Already various companies have announced to increase prices from next month.

Last week, Tata Motors said it will increase prices of its commercial vehicle range by around 2 per cent with effect from October 1. Similarly, the country largest carmaker Maruti Suzuki India (MSI) has increased prices of its entire product range, except Celerio, by up to 1.9 per cent.

The company had noted that it has taken the decision to hike prices due to an increase in various input costs.

It was MSI's third price hike this year.

In the two-wheeler space, Hero MotoCorp has raised prices three times already this year.

The company has made an upward revision in the ex-showroom prices of its motorcycles and scooters by Rs 3,000 with effect from September 20.

The two-wheeler major had earlier increased prices of its motorcycles and scooters by up to Rs 1,500 in January, and again by Rs 2,500 in April this year citing rise in input costs.