Toyota Kirloskar Motor’s Deputy Managing Director N Raja says prices of diesel variants will be increased by 15-20 per cent in the BSVI era
The BSVI emission regulations are kicking in from April 1, 2020 onwards and Toyota Kirloskar Motor’s Deputy Managing Director N Raja believes that the prices of his brand’s diesel vehicles will increase between 15 and 20 per cent due to the upgrades involved in making them produce lesser emissions. Unlike manufacturers competing in the entry-level segments, Toyota does rely on diesel engines for a large portion of its sales.
The Japanese company’s top-selling models in the country, the Innova Crysta and Fortuner, are positioned in the premium spaces where buyers going for diesel engines are extremely high. N Raja further told that Toyota is holding an impending price hike due to the unfavourable exchange rate scenarios as well. The expected price hike of 15-20 per cent meant that the Fortuner and Innova Crysta could have their prices go up by Rs. 6 lakh.
Currently, the Innova Crysta is sold between Rs. 14.93 lakh and Rs. 23.47 lakh (ex-showroom). The diesel variants range from Rs. 15.67 lakh to Rs. 23.47 lakh for the diesel full-loaded AT (ex-showroom). The Fortuner, on the other hand, costs Rs. 29.84 lakh for the base diesel trim and it goes all the way up to Rs. 33.60 lakh for the top-spec diesel automatic (ex-showroom).
The reduction in GST rates is necessary for the long-term improvement in the overall sales trend and Toyota echoes that sentiment. N Raja wants “permanent solutions” from the Indian government as offering discounts to lure in customers during the festive season are deemed only as temporary measures to offset the massive slump in volumes across the automotive sector.
The auto manufacturers, as well as component suppliers, are seeking ways to bring down the GST rate from 28 per cent to 18 per cent to improve demand that has sunken big time and resulted in huge losses in jobs. The GST Council meeting scheduled for September 20 could make vital decisions as the government has suggested on the GST tax cut to thwart further drop in sales.
When the GST Council convened last time, the GST rate on electric vehicles was reduced from 12 per cent to 5 per cent. In the Union Budget 2019, the income tax deduction of Rs. 1.5 lakh was also announced on the interest paid on electric vehicle loans.