The company, which is present in India through a joint venture with the Kirloskar group -- Toyota Kirloskar Motor (TKM) is, however, yet to finalise the details on the quantum of hike on individual models.
"We have been holding back a price hike and absorbing for a long time, but input costs, electricity, maintenance and foreign exchange have increased. Therefore, we have decided to increase prices of our vehicles from January," TKM director and senior vice-president, sales and marketing, N Raja said.
When asked about the quantum of hike, he said: "We are still finalising the details, but it will be up to 3 percent."
TKM sells a range of vehicles from compact car Liva with price starting at Rs 5 lakh to Land Cruiser tagged at Rs 1.29 crore (all prices ex-showroom Delhi).
Already German luxury car makers Mercedes Benz and BMW have announced that they would increase prices of their vehicles across models by up to 2 per cent and 3 per cent, respectively, from January to offset rising input costs.