Team-BHP - Toyota Fortuner crosses hallowed 50-lakh OTR price in Bangalore

The pricing is clearly atrocious for a value conscious buyer but then, the prospective buyers of this vehicle are not someone who will be value conscious - babus, businessmen, contractors and like. Clearly a case of milking customers as there is no direct competition. I for one will never think of plonking 50 big ones for this! I can get a Thar for pure off-road fun and buy XUV 700 too if I need to move people in luxury and still have some spare money left! Hyundai/ Kia needs to seriously consider bringing in their flagship Telluride.

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Originally Posted by vishy76 (Post 5170519)

Toyota is going to laugh all the way to the bank.

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Originally Posted by Bibendum90949 (Post 5170760)

Toyota is milking Indian buyers.

A lot of you may not be aware but in FY21 Toyota Kirloskar has delivered INR -55 Cr. (minus 55 cr.) of net profit. Basically they are in loss. Such price hikes are expected, it's literally about staying afloat! The only way for them to survive 'in current situation' is to sell Fortuner and Innova at high margins and fund rest of the models / operations.

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Originally Posted by ulhas.ahirrao (Post 5171868)

A lot of you may not be aware but in FY21 Toyota Kirloskar has delivered INR -55 Cr. (minus 55 cr.) of net profit. Basically they are in loss...

AFAIK Their dealers have the rather low margins not just in sales, but even in service, i.e. compared to the industry. Moreover, Toyota controls its dealer operations quite sternly.

If they're still in losses, they need to introspect about their costs and royalties.

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Originally Posted by ulhas.ahirrao (Post 5171868)

A lot of you may not be aware but in FY21 Toyota Kirloskar has delivered INR -55 Cr. (minus 55 cr.) of net profit. Basically they are in loss. Such price hikes are expected

If they are selling these overpriced products(compared to other manufacturers) at a segment leader position in terms of # vehicles sold and still making losses something is seriously wrong in the management that Toyota needs to introspect

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Originally Posted by ulhas.ahirrao (Post 5171868)

A lot of you may not be aware but in FY21 Toyota Kirloskar has delivered INR -55 Cr. (minus 55 cr.) of net profit. Basically they are in loss.

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Originally Posted by ssateesh (Post 5171883)

Hehe, while I do understand the need to stay afloat, I am sure that is not the case with Toyota.

Paper/Accounting Losses is a different ball game and looking at their presence/dominant position in target markets/segments, I doubt they are finding it hard to survive here.

They are milking what they can just as any business house would do. What is commendable with Toyota is the quality control which most of us would agree here on this forum. It is us, the demand side, that needs to decide if a Fortuner at 50L is worth or not. Time and Market Dynamics will tell us if this is indeed the correct price or not :)

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Originally Posted by cool_dube (Post 5170961)

That, my friend, is the crux of the matter! If one wants a monocoque crossover (with/without AWD) there are options aplenty across all budgets. But when it comes to a ladder-frame 7-seater SUV with "proper" (read low-range) 4wd hardware, there is nothing else out there - Endeavour is gone, Alturas is counting its days here, Isuzu is not interested in selling the MU-X here, and Gloster is yet to prove its mettle, Chinese pedigree notwithstanding!
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I agree here. There are no hardcore off-road vehicles to really challenge the Fortuner. The V-Cross is a decent alternative, but Isuzu is taking this market lightly. They don't even have a large dealer network till date.
Wish Tata would stop shying away from 4WD systems and incorporate one in the Harrier or the Safari, which otherwise are great cars having a butch street presence. A 4WD variant on either or both would really compliment the road presence and would definitely be a success if priced in the 30 - 35 lakh price bracket.

A milestone reached and a psychological barrier breached!

Why not ? Diesel has breached the Rs 100/- barrier so the Fortuner at Rs 50 L is not surprising. The politicians revel seeing its imposing and aggressive frontal looks, the very, very attractive white shade that's much more imposing than their older, discarded Ambassadors. Never mind the price tag or the interior space crunch which the politicians have no time to understand or criticise. The lesser politicians see their bigger counterparts using Fortuners and the choice trickles down to the lower levels. The white Fortuner with a national flag hoisted on a mast either on the bonnet or fender replaces the Ambassador as a symbol of power come 2021.

Its sibling Innova has also breached the Rs 25 L barrier, the top variant selling for around Rs 29 L on road.

Though the politicians preach "make in India" but many components for the Fortuner must be imported attracting higher import duties and these price tags compounded with Toyota's call to customers yelling "gimme all your money" adds to round up the price to Rs 50 L.

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Originally Posted by Thermodynamics (Post 5171399)

Could you please compare the breakup with Indian tax rates, just curious to know how different are prices before taxes. FYI we have in India 28% GST + 20% Cess. And road tax can be anywhere between 3 to 24% that is applicable on price including GST + Cess (tax on tax). So the resultant tax would be 52% to 83% of vehicle price.

Forget about taxes, there is a big difference in the prices:

Top Spec Fortuner (Crusade 4WD AT) in Sydney - AUD 62,000 (INR 34,36,708)
Top Spec Fortuner (4WD AT) in Bangalore - AUD 68,880 (INR 38,18,000)
Top Spec Legender (4WD AT) in Bangalore - AUD 76,350 (INR 42,33,000)
* All approx. ex-showroom prices, converted on Google

That is a massive INR 8,00,000 (AUD 14,350) premium for those fancy headlamps and a body kit. Remember, Fortuner's are manufactured in India while they are CBUs imported into Australia.

Coming to your question, IMHO a comparison would not be fair. The whole system (not just taxation) is so different between the two countries. To give you a fair idea, the components in a car's on-road price in Australia are:

1. GST* - 10% of the vehicle price
For the fortuner - included in the MSRP which is approx. AUD 62,000

2. Stamp Duty* - $3 per $100, or part thereof, of the MSRP. For vehicles valued over $45,000, stamp duty is $1,350 plus $5 per $100 of the MSRP over $45,000
For the fortuner - approx. AUD 2,200.00 per year

3. Registration Fee* - AUD 68.00 + a fee based on vehicle weight + additional charges
For the fortuner - approx. AUD 594.00 per year

4. Compulsory Third Party (CTP) insurance* - determined based on a variety of factors - type of car, primary location, age of owner, driving history of the owner, other drivers etc.
For the fortuner - AUD 434.77 - AUD 740.63 per year

5. Luxury Car Tax (LCT)* - 33% LCT applies to vehicles of value $69,152 or more.
For the fortuner - N.A. (since the MSRP is approx. AUD 62,000)

6. Dealer Fees - Usually a flat fee that varies from one dealer to another
For the fortuner - approx. AUD 2000.00

Note
Items# 2, 3 & 4 can vary from one state to the other. Above examples are for New South Wales (of which Sydney is a part of).
* - Indicates government mandated fees/ charges