The decision to increase prices of Toyota cars in India comes in the backdrop of the increase in GST Cess on certain automobiles. The increase in GST Cess ranges from 2 to 7 percent across mid-sized, luxury cars and SUVs.
Prices for Toyota's best-selling Innova Crysta will approximately increase by up to Rs 78,000, Fortuner by up to Rs 1,60,000, Corolla Altis by up to Rs 72,000 and the Platinum Etios by up to Rs 13,000. All prices are indicative of Delhi state and will vary in different states.
Toyota has not increased the prices of small cars such as the Etios Liva, Etios Cross as well as hybrids.
Expressing his views on the price hike, Mr. N. Raja, Director & Sr. Vice President, Marketing and Sales, Toyota Kirloskar Motor said, "Following the ordinance on GST amendment, we have to revise the price of our products in line with the cess hike which may nearly reflect the prices in the pre-GST scenario."
Toyota's vehicle portfolio includes Innova, Fortuner, Corolla Altis, Etios, Etios Liva, Etios Cross, Camry & Camry Hybrid which are being manufactured at its Bidadi plant in Karnataka. While the Toyota Prado, Land Cruiser, and Prius are imported as Completely Built Units (CBUs).
Toyota has passed on the price increase to customers and will impact the overall sales of Toyota vehicles in India. That said, Toyota vehicles have been of high quality, and models such as the Innova Crysta and Fortuner will continue to witness strong demand.