Falling rupee, higher crude oil prices impacting auto industry: Toyota Kirloskar Motor top executive
Rupee depreciation is impacting the bottomline of auto industry, which is already reeling under the impact of increasing crude oil prices, a top official of Toyota Kirloskar Motor said on Friday
Mumbai: Rupee depreciation is impacting the bottomline of auto industry, which is already reeling under the impact of increasing crude oil prices, a top official of Toyota Kirloskar Motor said on Friday.
"Rupee depreciation is impacting the auto industry to an extent of erosion of profitability," Shekar Viswanathan, vice chairman and whole-time director of Toyota Kirloskar Motor told reporters at the launch of the firm's mid-sized sedan, Yaris, in the domestic market.
"Crude oil price increase also taking a toll on the industry," he added.
While the rupee is hovering around the Rs 67 mark against the US dollar, crude oil price has crossed $80 a barrel this week, amid rising geopolitical tensions.
Toyota Kirloskar Motor, the joint venture between Japanese auto major Toyota and Kirloskar group, on Friday marked its entry into the highly competitive mid-sized sedan segment, with the launch of Yaris. The car prices start at Rs 8.75 lakh (ex-showroom).
Yaris would compete with the likes of Honda City, Maruti Suzuki Ciaz and Hyundai Verna in the domestic market.
Viswanathan said the company plans to increase the local content in the variants, adding Yaris currently has 87 percent localisation, while the Etios has the highest local content, at 90 percent.
Stating that the company is expecting the government to rationalise the goods and services tax (GST) rates on hybrid cars, Viswanathan ruled out any plans to increase vehicle prices.
The factors that are likely to impact inflation number going forward include volatility in the global financial markets, oil prices, MSP pass-through and staggered impact of HRA increases by states.
At present hybrid vehicles attract excise duty of 12.5 percent, similar to the ones on entry level small cars