Toyota won’t drop prices due to weaker Yen

Toyota Australia has confirmed the weakening Japanese Yen will have no impact on the prices of its new vehicles – despite higher prices due to the all-hybrid shift for most of its model range.

The Yen has been weakening against the Australian dollar for more than a year now, with ¥1 currently buying just 0.92 cents – down from $1.15 on March 24 last year – or $1 now worth ¥108.34, depending on how you prefer to look at currency exchange rates.

In theory, the weaker Yen should lead to lower retail prices in Australia if Japanese auto brands pass on their savings rather than increase their profit margins, but so far there’s no sign of that and the nation’s market leader says exchange rates are “just one of many factors” when it comes to setting list prices.

“Toyota strives to ensure certainty in pricing, so we do not alter prices based on short-term fluctuations,” a Toyota Australia spokesperson told carsales.

“Currency is just one of many factors. In recent years, higher prices for raw materials, labour, tooling and packaging have increased our manufacturing costs.

“We are also facing persistent inflation, both here and overseas.

“In addressing these challenges, Toyota remains committed to keeping price increases to a minimum while maintaining our customer expectations for the quality and reliability of our vehicles.”

Toyota Australia recently made the daring decision to ditch petrol engines from its core passenger car and SUV model range, leaving ladder-frame off-roaders like the LandCruiser/s, Prado and Fortuner, the HiAce van and its GR performance coupes and hot hatches as the only models without hybrid power.

When he announced the move, Toyota Australia sales, marketing and franchise operations vice-president Sean Hanley confirmed prices of the remaining hybrid variants would not be reduced to compensate for the lack of cheaper petrol-only versions.

“I don’t think we’ll lose volume, why would we? They [hybrids] represent such a high percentage [of sales] now, and demand’s outstripped supply for years,” he told media in June, acknowledging the resulting $2500-$4000 jump in entry price for the RAV4, Kluger and Corolla Cross.

“Yes, petrol-only models have been price-leaders, we get that. Even so, what is important to understand is this – across the models where customers have had the choice, the vast majority have chosen hybrid over petrol,” said Toyota Australia’s sales chief.

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