Toyota India Sales For June Decline

Toyota Kirloskar Motor's sales for the month of June 2017 fell to 1,973 units, thanks to the new GST slab for SUVs and vehicle which are more than 4 metres and carry engine capacity of more than 1500cc.

Large cars, such as SUVs, will attract 28 percent tax and 15 percent additional cess taking the total to 43 percent. The current tax for these vehicle stands at 55 percent, so comparatively, you'll end up paying 12 percent less post-July 1, 2017.

Toyota's biggest selling models such as the Innova Crysta and Fortuner fall under the category we are reading here. And customers seemed to be postponing their plan of buying the vehicle post-GST roll-out.

Commenting on the monthly sales, Mr N. Raja, Director & Sr. Vice President, Sales & Marketing, Toyota Kirloskar Motor said, "The uncertainty surrounding the GST implementation with regard to the passenger vehicles has impacted the retails as the customers are postponing their plan of purchasing the vehicle post-GST roll out."

"Thus, in line with our "Customer First" philosophy, Toyota Kirloskar Motor has taken a conscious decision to lower the volumes of vehicles sold to dealers this month. We believe that our dealers are our first customer who caters to the requirements of our end customers."

He further said, "This strategy has been undertaken to ensure that there is a minimum burden on our dealer partners and they can focus on clearing the existing stocks at the dealerships. Our dealers are our allies and play a vital role in our sustained business. We at Toyota always strive to support them through any business challenges."

"Thus, closely monitoring the customer sentiments we have taken this step to lessen any impact of the differential tax post-GST roll out effective 1st July '17. Putting the dealers' needs ahead of everything else has been our first priority to ensure quality products and provide good service."

DriveSpark Thinks!

The GST might have had customers abstaining from buying a Toyota, but once the GST slab and subsequent price calibration, there sure will be a surge in sales given that there will be a price reduction.