Stating that India is the most challenging market in the world, Akito Tachibana, MD, Toyota Kirloskar Motors on Tuesday said 2016 has been the toughest year in the India operations. In an interview with BTVi, Tachibana said that demonetisation gave a severe blow to Toyota. "There has been a downfall of 30-40% post demonetisation." Talking further about small and hybrid cars he said, "Expectations from small cars in India different from US and Europe. Small Hybrid cars will not find any takers in the Indian markets."
Meanwhile, Toyota Kirloskar Motors has decided to increase the prices of its vehicles by 3 percent across its product portfolio from January 2017. The company has attributed the price hike in its products to increasing the cost of production and a continuous increase in foreign exchange rates. Speaking about the price hike, N. Raja, Director & Sr. Vice President, Marketing and Sales, Toyota Kirloskar Motor said, “There has been an increase in pricing of raw material commodities like steel, aluminum, copper and rubber over a period of the last six months and this puts a lot of pressure on us as all this has been leading to a higher input cost on our end. Another factor leading to higher input cost in our case is the appreciation of yen in the international market which has increased the cost of parts that we import from Japan.
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Toyota Kirloskar has also announced the “Remember December Campaign”, which offers 100 percent road finance and EMI holidays( buy now pay later in March 2017) on all its models. In addition to this, the customer can also avail a special EMI package of Rs 22,999 on select variants of Innova Crysta. In 2016 November sales, the company registered a 10 percent increase in its domestic segment. The manufacturer sold 11,309 units in last month and has received the 6,200 bookings of the newly launched Toyota Fortuner.