Toyota to hike vehicle prices of its key models from Sept 21-:
Japanese automobile major Toyota's Indian subsidiary on Tuesday
said it will increase the prices of its key models by 1.50 per cent from
Sept 21, 2013, on the back of the falling rupee value.
According
to the company, prices of entry-level sedan Etios, entry-level
hatchback Etios Liva, Innova and Corolla Altis will be increased.
Earlier,
Sandeep Singh, managing director and chief operating officer, Toyota
Kirloskar Motor, said the company might raise prices if rupee
depreciation continued.
The partially convertible Indian rupee has depreciated by close to 25 percent from the start of the fiscal year.
The
rupee depreciation coupled with high import duties increases the cost
of foreign built parts which are used by automobile companies in their
models.
Meanwhile, car sales in Europe are still sagging despite the return of modest economic growth.
For
the first eight months of the year, passenger car sales in the European
Union were off 5.2 per cent to 7.84 million compared with the same
period last year, the European Automobile Manufacturers' Association
said on Tuesday. That's the lowest January-August figure since the group
started keeping track in 1990.
The economy in
the 28-country EU grew 0.4 per cent in the second quarter, ending a
recession. But the unemployment rate remains high at 11.0 per cent,
making many consumers unable or afraid to buy a new car.
Governments
hit by the eurozone debt crisis have cut back on spending and raised
taxes to try to manage oversized debt levels, slowing their economies.
The hardest hit countries, such as Greece and Spain, face even higher
jobless rates that have hurt sales of moderately priced vehicles
especially hard. Luxury carmakers are doing better.
Rohit
PGDM 3rd Sem
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