Days after Toyota Kirloskar Motor announced a hike in prices of its cars by a good 1-2 per cent, the company has announced another increase. Well. it is not for the same models but the ones above Rs 35 lakh – the Toyota Camry hybrid and the Vellfire MPV. Both these models were exempt from the price hike earlier but TKM has now sent in a statement that they will be hiking prices of these cars from July 2020. While the price hike hasn’t been disclosed, we expect it to be around two per cent. This means the Camry could be priced from Rs 40 lakh onwards while the Toyota Vellfire might be for Rs 85 lakh, ex-showroom. These models along with the Glanza are the hybrids in the TKM range. The Toyota Vellfire, as per the last report, is already accounted for and fresh stock will arrive within a few months. The process could also be delayed due to the pandemic.
TKM says that the price hike was necessary because of the growing input costs as well as the weakening exchange rates. The company further says that they have always tried to take the maximum cost impact on themselves. This mid-year price hike is very unusual for carmakers as it is. Most of them are already reeling under the pressure of low sales volume and now that production as well as marketing are hit, the situation is grim. Carmakers like TKM are rolling out new offers to attract buyers. COVID-19 warriors are given special benefits and there is also the holiday EMI scheme. A customer who purchases the car on finance will have the opportunity to not pay an EMI for the first three months. This will help them to have cash flow in hand. It is but natural that this cost will then be passed on to them at a later stage.
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