Toyota Kirloskar Motor plans to raise car prices by up to Rs 50,000 beginning

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next year owing to stronger yen and higher commodity costs. Others automobile majors such as Maruti Suzuki, Hyundai and General Motors are also contemplating price hike to offset rising input costs.

“We will raise vehicle prices by 1.5 to three per cent from January 1,” said Sandeep Singh, deputy MD (marketing) at Toyota Kirloskar Motor. The company will take a final call on the quantum of hike on each vehicle later this month.

The price of our most expensive locally made product, Fortuner, may rise up by Rs 50,000 from Rs 20.45 lakh (ex-showroom, New Delhi) at present, Singh added. The company also sells Liva (Rs 3.99 lakh to Rs 5.99 lakh), Etios (Rs 4.99 lakh to Rs 7.87 lakh), Corolla (Rs 10.63 lakh to Rs 14.75 lakh) and Innova (Rs 8.48 lakh to 12.81 lakh).

Yen has strengthened by about 25 per cent against the rupee over the past year. Compared to 48 paise a yen at the same time last year, the rupee has depreciated to around 62 paise per yen as on date.

Maruti Suzuki, the first player to increase diesel car prices by up to Rs 10,000 last month due to currency fluctuations, hasn’t ruled out another price hike in January, including its petrol cars. “The pressure on margins because of commodity prices and currency fluctuations is high. Automobile makers including us will need to increase prices. It’s just a question of time,” said Shashank Srivastava, CGM (marketing), Maruti Suzuki India.

Srivastava pointed out that car price hike was also a function of the market, where most carmakers refrained from increasing prices in October to December 2011 due to slowdown. After three straight months of de-growth between August and October 2011, carmakers saw revival in the market due to high quantum of discounts on petrol cars and soaring demand for new, fuel-efficient diesel cars putting the industry back on growth path.

Carmakers such as Hyundai, General Motors and M&M are also contemplating hikes in prices of their vehicles from January. Honda Siel Cars India, however, said that it is not looking to increase car prices due to disruption in its production following floods in Thailand in October this year.