Toyota Planning to Increase Car Prices in North American Market

You already know that Toyota surpassed world’s largest automaker General Motors in terms first quarter profit of 2008 and there is possibility the Japanese car maker could secure the top place in the global automobile market at the end of this year.

Despite the sluggish U.S. sales, Toyota’s first quarter success was possible because of its strong presence in the emerging markets of the world. However, rising production cost and stronger yen have made it very difficult for Toyota to carry on business in the U.S. market. So, the Japanese company has recently decided to increase the price of the cars in North American market in order to cope up with increasing production cost and stronger yen against dollar.

AFP reported:

But Toyota is widely expected in the current business year to March 2009 to suffer its first drop in operating profit in nine years because of sluggish US sales and a stronger yen, as well as surging costs of steel and other materials.

From those to be shipped from Monday, the price of the popular Prius hybrid will likely climb by 1.8 percent and that of the Yaris compact by up to 1.7 percent, the Nikkei business daily reported citing unnamed company sources.

American economy is going through a recession period at this moment and it has put a negative impact on the automobile market. Thus, American domestic car market has become a tough ground to play on for all the auto makers including General Motors and Toyota. However, the good news for Toyota is that its petrol-electric hybrids cars are getting more popularity with oil prices increasing consistently in the global market.