Toyota hikes prices post cess increase

Rodiano Bonacci
Settembre 13, 2017

The decision has been prompted by the raise in cess from 2-7% across mid-size to large size cars and SUVs as amended by the GST Council.

Toyota Kirloskar Motor (TKM), the Indian subsidiary of the Japanese carmaker, has been quick to respond.

TKM on Tuesday increased prices of its products like the Innova, Fortuner, Corolla and Etios by up to Rs 1.6 lakh.

This translates into a price increase of Rs 78,000 for the Innova Crysta, Rs 1.6 lakh for the Fortuner, Rs 72,000 for the Corolla Altis and up to Rs 13,000 for the Platinum Etios.

The price of Hybrids models such as the Camry hybrid and the Prius, and those of small cars are unaffected by the cess hike.

"Following the ordinance on GST amendment, we have to revise the price of our products in line with the cess hike which may almost reflect the prices in the pre-GST scenario", TKM director and senior VP marketing and sales N Raja said.

With the cess in place now, the vehicles sales of Toyota in September may take a hit.

With the government notifying levy of increased cess, the effective GST rate on mid-size cars will be 45%, and on large cars it will be 48%.

The rate will be 50% on sports utility vehicles (SUVs), which include cars with length exceeding 4,000mm and having a ground clearance of 170mm and above. Small cars and hybrids, however, were spared from the cess hike.

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