Mercedes-Benz Considers Price Hike in India amid Weakening Rupee
Auto Companies are concerned due to the value of rupee, hovering over 72 against the US dollar.
The Deputy Managing Director of Toyota has stated that they are absorbing the high costs. However, if it is difficult to absorb in the coming days due to further depreciation, we will have to pass on a part of this cost to the customers by increasing the price.
TKM is a joint venture between the Japanese auto major and Kirloskar group.
N Raja also said the company is still dependent on imports for certain specific components although it has over the years substantially increased local content in its products.
TKM sells a range of products in the country, from locally-manufactured hatchback Etios Liva to imported premium SUV Land Cruiser.
When asked if the company would also look at enhancing exports as one of the measures to balance increase in import costs, Raja said: “We cannot specifically comment on our future export plans.”
He, however, noted that the company would continue to export the Etios series to countries such as South Africa and Indonesia.
“Having said that, Toyota is a global player with multi- production base in many countries, thus limiting our export space,” he said. For India to be a true global player competing with the developed nations, harmonisation or adoption of global standards is a must, he added.