Toyota Astra Motor (TAM) has increased its vehicle prices of around 1% at the beginning of this year in accordance with an increase in a number of production costs.
Although the average price increase reaches 1%, the nominal price increase varies according to model. Nominally, the lowest price increase occurred in the Hilux Double Cab, which amounted to IDR 1 million (US$ ). Meanwhile, the highest increase occurred in Land Cruiser, which amounted to IDR 32.6 million.
Toyota's best-selling models such as Avanza and Calya has experienced increase of IDR 1.95 million and IDR 2 million respectively. Avanza is now marketed in the price range of IDR 192.7-243.5 million (US$ 14,100-17,800), while Calya is in the price range of IDR 149.2-161.4 million.
Anton Jimmi Suwandy, marketing director, TAM, explained that the increase in selling price at the beginning of the year was generally influenced by inflation and increased production costs. There are also exchange rate factors that also affect prices.
"The price increase at the beginning of this year varies according to models, but of course this price increase has been studied as careful as possible, so that it can maintain market momentum," he told a daily.
Nevertheless, the increase in price this year was recorded lower than the increase in early 2019. In that period, the average price of Toyota cars experienced a price increase of 1.4% compared to 2018.
He said that based on experience in previous years, seasonal price increases at the beginning of the year were usually well received by the market. However, this generally occurs when market conditions are normal.
"Based on the calculation of inflation and cost, roughly the percentage increase is as appropriate now. We also definitely adjust to the price conditions that can be accepted by the market, we cannot just calculate inflation and cost," he said.
Earlier this year, the automotive market received negative sentiment from the flood disaster that occurred in Jakarta area. However, Anton said that this will not necessarily make the market conditions to worsen this year.
"Based on previous year's experience, the market can generally accepted routine price increase, but of course this happens in normal market conditions. At present, 2020 is still the beginning, we are still monitoring market conditions, "he explained.