Toyota announces the inevitable about the price of their cars because despite having been avoiding it during these last bars, they must review them.
For various reasons, such as COVID, the shortage of electronic components, or the energy crisis, the cost of cars has risen significantly in recent times, and few brands have managed to maintain their sales prices in a balanced way. Toyota, which has opted for a balanced pricing policy throughout the world, has already warned that the cost of its cars in Europe will grow due to the increase in its costs.
Today you buy a utility for the same price as a few years ago you bought a good compact. SUVs and electrification have raised production costs for brands. This increase has had repercussions on an end customer who has seen how with his money he cannot access the same offer that was presented two years ago. The increase in prices has been generalized, and the blame lies with different facts such as uncontrolled inflation, the cost of raw materials, and the considerable increase in the price of energy.
The crisis in Eastern Europe has forced Europe to control every minimal expenditure of energy that is made. Toyota is a company like any other and needs to balance its accounts. For this reason, company executives have warned that the price of all units for sale in Europe and the United States will soon be reviewed, and we will see how the price rises. The company’s justification is to offset the rising costs they have to face, but the big question is: how much will prices go up?
It is rare for a company to announce that the prices of its products are going to rise. The vast majority raise prices overnight without notice or gradually as anything. Toyota they have opted for a clearer policy, not for that reason simpler, although the cost of their cars has also been growing gradually, little by little, in recent months. The director of communications, Jun Nagata, has recognized that “we are racking our brains trying to find the adjusted price level”.
The Japanese estimate the increase in costs worldwide at more than 2,000 million dollars only in the period from July to September. If this escalation continues in the last quarter, the result could destroy the annual profit forecasts, something that is not contemplated. Each division is reviewing which is the most correct formula to increase sales prices. The situation in Spain seems particularly sensitive given the instability of the economy and the fact that Toyota ranks month after month as one of the most popular companies.
Its entry hybrids: Toyota Yaris, Toyota Yaris Cross, and Toyota CH-R often rank high in the hybrid market. The domain is so overwhelming that the leading trio is usually accompanied by the Toyota Corolla. Spanish managers know that drivers’ pockets are already squeezed enough to now come with an increase in prices. Currently, a Yaris Cross, a B-SUV, has a minimum price of more than 25,000 euros. The CH-R breaks the $28,000 barrier, and the cheapest Yaris is the only one available below $20,000. Soon we will know the new prices, although it would not be strange to think of an approximate increase of 2,000 euros per unit.
