Friday, June 27, 2008

Toyota Considering Price Hike for Cars and Trucks in Domestic market

Reports have it that Toyota might increase the price of cars and trucks broadly in the domestic market. The Japanese car maker is considering a price hike in order to keep balance with the increasing prices of steel and some other materials of cars and trucks. If Toyota really implements this plan then for the first time a broad price hike would come into existence since 1974 when oil crisis triggered price hike.

Marketwatch reported:

The automaker is considering a plan that would amount to the first across-the-board price hike since 1974, at what was then the height of the previous oil crisis, the Nikkei newspaper reported, citing an unidentified senior Toyota official.

Company officials will assess April-to-June sales and production costs, and are likely to announce a decision on prices next month, the report said.

Toyota bosses will announce the final decision after reviewing the sales and production costs of April-June period. It is not yet confirmed if Toyota will really materialize this decision, because the demand is already not that strong in Japan now. The price hike might range 1% to 3%, if the decision of price hike is really implemented.