[Bhupesh_2628]

Yes, the Fortuner is overpriced for what it offers.

Toyota always likes to play it 'safe' when it comes to few parameters in their cars, not only in India but worldwide. Otherwise, all that reliability, maintenance costs, resale value would surely get disturbed if they were to go little overboard with the current parameters.

There's no denying that it's a good SUV but far from what I'll call a near-perfect SUV, especially, the price it's being sold at.
(Read: I know there isn't any all-rounder SUV/Car).

[AROO7]

Originally Posted by shibujp

The design and sales performance of the Korean cousins the Palisade and the Telluride is also impacting the traditional bastion of Toyota. I feel the design updates are primarily to counter this.

Drive on,
Shibu.

That's exactly what I meant by the phrase 'right motivation'.

Although Palisade and Telluride don't fall under the same segment as the Sequoia. The better comparison would be Elantra and Corolla or Sonata and Camry. Both the Toyota sedans pack a lot of feel-good features now and come with a good-looking interior and exterior (especially in the Nightshade trim) thanks to the stiff competition from the Korean duo (Hyundai and Kia).

[COMMUTER]

With the government fumbling around with ill-thought green initiatives, they might cap the life of the vehicle, rendering the legendary resale value of the Fortuner non-existent overnight.

Toyota must have had a Plan-B in the entry level like they did with the Etios.

The owners too must stop speculating about the resale value and start focussing on getting the value at the time of purchase. They should know that the inflation-adjusted amount they are getting at the end of their ownership is a placebo and not an antidote to their miscalculation at the time of purchase. The company cannot keep riding the reliability wave as most of the owners rarely drive past the 2L mark every decade due to either having multiple cars or just lowered requirements. The breakdowns in any car inside that mileage will be usually due to poor maintenance and not due to being a brand being inherently unreliable.

[padmrajravi]

Originally Posted by COMMUTER

The breakdowns in any car inside that mileage will be usually due to poor maintenance and not due to being a brand being inherently unreliable.

Nope. And it is not only about the breakdowns. It is also the number of unscheduled visits for fixing minor issues. Head to the Harrier, Safari, XUV700 and Thar threads and count the number of unscheduled visits the owners had to make under 1 year of ownership. And then head to Fortuner or Crysta threads and do the same. There is a cost to those unscheduled visits and the distracted mind that could have otherwise focused on work.

Agree with the resale part. By the time post 2020 Toyota owners sell their cars, the world would have moved on to EVs and they won't get the legendary resale.

[Turbanator]

There was a post somewhere mentioning Toyota earning a paltry 40K and dealer 100K on a Fortuner. It's completely a joke, apart from the dealer commission which seems about correct.

Before GST, Fortuner ex-factory price for this trim comes around 32 Lac (50% GST) which is roughly 5,330,000 JPY or a little higher than what Toyota charges in Japan for LC300 (base trim)

https://toyota.jp/landcruiser/?padid...UV_landcruiser

Toyota India is minting money, no two doubts about it and at this speed, they will recover all old losses they made on the Liva twins. Hopefully, this may convince Japan HQ to invest more here and we start seeing LC- Prado/ RAV4/ Highlander assembly operations.

So, we should be thankful to all customers of Fortuner in my opinion if this actually happens

[MotoBlip]

Originally Posted by Turbanator

There was a post somewhere mentioning Toyota earning a paltry 40K and dealer 100K on a Fortuner. It's completely a joke, apart from the dealer commission which seems about correct.

The post was probably based on a video made by a CA Youtuber and I think most articles online misrepresented facts. The youtuber made this assumption by calculating profit per vehicle using the formula {O.P(Operating Profit)/No. of cars sold} which also is an egregious hypothesis since O.P includes sales, service, operations, marketing etc.. So basically, he generalized the entire thing and obviously it sounds bogus to us all.

These sort of profit margins might align fine with the Glanza or maybe the Urban Cruiser(assuming Toyota pays royalties to Maruti) but none of their other vehicles. All of that aside, you're absolutely right, both Toyota and GOI are minting money, riding the Fortuner's tide

[Kaydee55]

Originally Posted by Turbanator

There was a post somewhere mentioning Toyota earning a paltry 40K and dealer 100K on a Fortuner.

Assumptions made to arrive at these figures overlook these aspects -

As we know in India, Toyota India is a joint venture between Toyota Motor Corporation (TMC) and Kirloskar Group. Toyota Motor owns 89% and Kirloskar group 11% of Toyota Kirloskar Motor Private Limited also known as TKML.
TKML, India must be paying royalties back to Toyota Motor, Japan to use brand name and designs.
Secondly, during the manufacturing of any car in India, many parts and sub-assemblies are either imported or sourced from approved suppliers of TMC, Japan. Many so-called approved suppliers are companies which are further indirectly or many times directly owned by TMC, Japan only. So these outsourced parts which were around 50% of total parts in Innova and Furtuner till few years back (don't have exact figures as on today) add to substantial profit to parent company.
TKML, India cannot bypass these procurement processes and also don't have much control over pricing as parts and costing are approved mostly by TMC, Japan.

Recently, we were approached by a much smaller joint venture (Indian minority stake + Japanese majority stake) automotive sub-assembly supplier company in NCR for indigenization of a non-critical plastic parts assembly. Our handsome profit cost was Rs. 750/- for that assembly and it was being sourced for Rs. 5,500/- (inclusive of duties and freight) from Japan.
Still, we didn't get the approval as the head office in Tokyo wanted to audit us, which will be done after the pandemic is over and the team will be able to travel freely. In other words that project will never materialize.

So this INR 40,000/- profit per Fortuner is the amount which is needed to be shown in the balance sheet to keep the finances of TKML, India in good shape, otherwise by simply increasing some royalty or sub-assembly cost this can be further reduced also.
But TMC, Japan must be getting much more in actual terms.

[embee]

As per NEWS 18 website, the Toyota Fortuner, a highly-popular product amongst SUV buffs, is available in the market for a price range of Rs 31 lakh to Rs 48 lakh (ex-showroom, Delhi). If a recent explainer video is to be believed, whenever a Toyota Fortuner is sold, the manufacturer earns a total of Rs 35,000-40,000, and the dealer earns around Rs 1 lakh. When it comes to the government, one sale of a Toyota Fortuner fetches a sum of about Rs 18 lakh in the form of cess and taxes.

The breakdown of this transaction was explained by a YouTuber who runs a channel named Sahil Jain Classes. In the video, the ex-showroom price for a Toyota Fortuner is set at Rs 39,28,000. Of this, the real price of the car is Rs 26,27,000, whereas the remaining amount adds up due to two components of the GST – GST Compensation Cess which is at 22 percent and GST at 28 percent.

This is followed by lieu of other charges inflicted on the overall cost of the Toyota Fortuner. These charges are registration, logistics, FAStag, Green Cess (for diesel vehicles), TCS, Insurance, and Extended Warranty.

The government only gets the money collected from the registration fee and green cess. Therefore, adding all the taxes and fees, the total amount that the government earns adds up to little more than Rs 18 lakh.

Coming to the breakdown for the dealer, the earning on one sale depends on the commission they get on the ex-showroom price of the car which only includes the actual price and the GST components. They also earn commission on insurance, accessories sale and financing. Considering all the calculations, the dealer earns roughly Rs 1 lakh after selling a Fortuner.

The car manufacturer earns the least as they only get a share of the actual cost of the vehicle which is close to Rs 40,000 profit on one car.

https://youtu.be/d8Wxgn_d_-Q

Source: https://www.news18.com/news/auto/per...y-5254435.html

[CEF_Beasts]

There is no way Toyota India earns only 40k for each Fortuner.

They would’ve long left the market if that was the case!

[MotoBlip]

This has already been discussed here.

I too think the number is absurd, but then again, a lot of assumptions are involved so can't say for sure.

[Hawk]

61 lakhs On-Road Bengaluru for a Toyota fortuner with a body kit , I should have posted this on the jokes thread .

[SR-71]

While all of us, including I, complaint loudly about Toyota jacking up the price, we do need to understand that Toyota has a business to run and it cannot sell something less than what it costs to build. As I have mentioned in multiple posts in the past, the government is responsible for this massive consumer pricing. Lets take an example of the GR-S pricing. If we reduce all the tax + insurance portion, Toyota takes home only 53% of the price we pay. In other words, of the 60+L OTR Bangalore, Toyota's take home is only ~32L. This is because of the 50% GST/cess + 22% Road Tax in Karnataka. And remember the 32L that Toyota takes home is again impacted by huge tax burden on the raw materials it takes to build the car. The breakup below highlights the tax portion of the car.



Compare this to pricing of the same unit in our neighboring country Thailand where I believe VAT is 7%. The retail price of the unit is ~1.87 Million THB. This comes to 42.2L in our currency. So the pre-tax price is in the ball park of 39.5L, higher than what Toyota takes home in India. Agreed, there are additional features like Toyota pre-sense in the Thai version. So I believe it justifies the additional 7.5L it costs there.

Bottom line, while the car as a whole is obnoxiously priced for end consumers, Toyota's role in that is negligible if any. With rising input cost ,its either rise the price or pack up and go home like Ford. Fortunately for Toyota, the space for now has room for play due to lack of competition so they are doing what they do best, pass on the cost to consumers. But it may not remain so for ever and we will have lesser and lesser quality cars available for the common joe.