1 Jan 2009

New car prices to rise further - Toyota

4:32 pm on 1 January 2009

Toyota expects the cost of new cars will continue to rise until the New Zealand dollar can perform better in the international market.

General sales manager Steve Prangnell says the price of all new imports were increased 2.5% on 1 January and more price rises will follow.

"The rapid depreciation of the New Zealand dollar and the rising cost of raw materials has just meant that every Asian manufacturer has to try and recover some loss," said Mr Prangnell.

"We've been absorbing the cost increases - we've really got no choice but to raise our prices which will obviously dampen down demand."

Honda, Mitsubishi, Mazda, Kia and Holden have raised prices in the past couple of months.