[nareshtrao]

Originally Posted by RaghuVis

The minority left are the rich individuals who did not have problem spending 55-60 lakhs and now will have to pay few lakhs more. Let them keep buying

That is not correct. A lot of us here are Petrolheads or True motor aficionados who believe in buying good upmarket vehicles albeit with a little planning and longer term well structured financing options.

So it is unfair to say that just because a person buys an expensive vehicle he is "rich" in a "crass" way.

I myself bought a Ford Endeavour in 2016 even before launch and it was billed at 38.5 on-road in Bangalore in Mar/Apr of that year (almost same as what Fortuner top end cost was - or perhaps 20k more). I was neither "rich" in those terms not had "other" income or funding from "govt. or public" as suggested. I subsequently also bought a German car with a similar planning (long term financing and planned foreclosure in steps)

There are numerous such examples of vehicle lovers here on TBhp who plan and buy because they prefer having such vehicles out of passion for automobiles.

When it is time to replace the Endeavour (still going strong), I sure will go for the 2024/25 launch New-Look Hybrid Fortuner based on Tacoma Platform, whatever it costs, with some planning so that it does not pinch my regular life and commitments.

No offence meant but some of us have that passion for good wheels. Many here do.

But offence taken if you say let them "suffer" just because "they can afford".

[Amey Kulkarni]

Originally Posted by CEF_Beasts

And the Fortuner 2.7L that starts at 126900 AED is absolutely barebones: No Auto AC, No leather seats, etc etc.

The Fortuner in UAE just gets two trims anyhow as appended. I still believe it’s not Toyota overcharging in India, it’s the taxes.



Cheers
Amey

[Nithesh_M]

Originally Posted by Amey Kulkarni

The Fortuner in UAE just gets two trims anyhow as appended. I still believe it’s not Toyota overcharging in India, it’s the taxes.

Attachment 2516697

Cheers
Amey

Yeah i am interested in seeing the invoice of a top end Fortuner. What % goes to manufacturer and what % to Government.

[nareshtrao]

Originally Posted by Amey Kulkarni

The Fortuner in UAE just gets two trims anyhow as appended. I still believe it’s not Toyota overcharging in India, it’s the taxes.

Spot on. It is the taxes.

Precisely why most vehicles including the Germans are obscenely priced in India compared to their equivalent model counterparts in other countries. In case of Germans, most of the similar models come with more features (heated/ventilated seats, OHD, Air suspension on most models to name a few) but when sold in India many of these features are removed and still the cost (converted to Rupees or Dollars for comparison) is close to 40% more here.

[heydj]

Even with a hike one after the other Fortuner will still sell because 1. Maintainance free ownership 2. Butch looks.

To make a dent in this market competition has to only do one thing and that is offer all breakdown related repairs free for next 10 years. Imagine if I could own Jeep Meredian knowing fully well that whatever repair / breakdown cost it's 100% covered.

To get buyers to change buying behaviour requires sustained effort which other companies don't want to do hence Fortuner sells.

[Amey Kulkarni]

Originally Posted by Nithesh_M

Yeah i am interested in seeing the invoice of a top end Fortuner. What % goes to manufacturer and what % to Government.

Absolutely! Include GST in the Ex-Showroom as well

Cheers
Amey

[ex-innova-guy]

Originally Posted by Nithesh_M

Yeah i am interested in seeing the invoice of a top end Fortuner. What % goes to manufacturer and what % to Government.

Originally Posted by Amey Kulkarni

I still believe it’s not Toyota overcharging in India, it’s the taxes.

Originally Posted by nareshtrao

Spot on. It is the taxes.

I might be wrong here but considering Cess @ 22% and GST @ 28% this would be the Taxes which are paid to the Govt.

Note- This is calculated on the Ex Showroom Price and the On Road Price will include even more Taxes.

[CalmConquests]

Everyones been complaining about the Fortuner's price since forever.

My first Fortuner was a 2017 4x4MT with an ex-showroom price of 28.90L.

My second Fortuner is the facelift 2021 4x4AT when the ex-showroom price was 37.80L.

People complained about how high the prices were both in 2017 & even in 2021 when I got these two cars.

Today, the ex-showroom price is 42.32L for a 4x4 AT.

Today, no good car is priced "correctly" priced. European cars are way more overpriced & are a nuisance to own & do about 100km/day.

They can't take even our bombed-out city roads without cracking a sidewall or worse, a bent alloy wheel. Let alone get off the pavement.

Let's also not forget about the suspension arms / bushes, that need replacing every 3 years if you're rough roading them like I do. Plus, most euro cars chew through their tires within 25k to 30k kms. A fortuner's stock tires last at-least 60k kms whilst also costing less to replace.

If you want that One single car that can do it all from being an endless mile muncher to a tough as bones go anywhere machine, there's no competition. Yes it is overpriced, but this is one car where you just cannot go wrong longterm.

[wheeledwanderer]

Not saying this because I own a Toyota FJ but nothing can beat a Toyota in terms of reliability, Safety, and pocket-friendly when it comes to maintenance. People in my off-road club abuse these cars and even at 1/2 million miles, they run butter smooth if maintenance is done at regular intervals. No wonder Toyota milks them when there is an opportunity to do so!

[CentreOfGravity]

Looking at the rate at which Toyota is increasing the Fortuner's prices, we might as well have a separate section on Team-BHP for updates on Fortuner's price hikes

[inwester]

Originally Posted by ex-innova-guy

I might be wrong here but considering Cess @ 22% and GST @ 28% this would be the Taxes which are paid to the Govt.
Attachment 2516747

Spot on. Also add the 1% TCS which is charged on top of it and included in the ex-showroom price.

So 28% GST + 22% Compensation Cess (for 1.5 L engine or higher + SUV) + 1% TCS, total of ~52% tax on the invoice price.

Actual invoice price of Mercedes GLC 300 is under ₹50 lakhs, but when you add it all up ex-showroom price becomes around ₹74 lakhs and then you add another 22% road-tax (in Kerala), you are now looking at ₹90+ lakhs. Add in insurance and other extended warranty/maintenance packages, we're talking ₹95 lakhs.

At ₹50 lakhs, GLC is around $60,000 USD which is around the ex-showroom price in America, which is one of the cheapest countries to buy a car. However, we end up paying double, due to insane taxes.

For any decent sized car in India, 34% of the ex-showroom price is paid in taxes and around 45% of the on-the-road price is paid in taxes. Around ₹23-28 lakhs is what most non-absurdly-taxed countries will be paying for a Fortuner.

Our economy thrives on the automotive sector, be it fuel or the car.

[RaghuVis]

If someone without much knowledge of car prices were to go through this thread, they will assume that government has suddenly increased tax specifically for Fortuner and poor Toyota had no option but to pass that burden to customers!

[Guru_Shikhar]

This is Gold Digging by Toyota, and why should they not do it ?
There is no real opponent for them but internal product competition; they will mint as much of
Money as they can like any other business.

Forutuner has its own limitations is well accepted here and people prefer it as first choice. Maintenance factor image of Toyota helps them increase their sales exponentially. I think most loyal customer feedback index must be ruled by Toyota in India.

Last thing is superb resale value which no other product gives you.

Finally it’s about money for which you are in Business!!!!

Cheers

[UD17]

Originally Posted by RaghuVis

If someone without much knowledge of car prices were to go through this thread, they will assume that government has suddenly increased tax specifically for Fortuner and poor Toyota had no option but to pass that burden to customers!

Very true. Its Toyota who is increasing the Ex Factory cost. Again do Toyota compensate the same delta costs to all downstream from where this cost is escalating i.e. Raw material, energy cost, inflations, labor cost, transportation etc., I guess No.

[nareshtrao]

Originally Posted by ex-innova-guy

I might be wrong here but considering Cess @ 22% and GST @ 28% this would be the Taxes which are paid to the Govt.

Note- This is calculated on the Ex Showroom Price and the On Road Price will include even more Taxes.

Attachment 2516747

You totally missed the Excise Duty of ~20% + which is applicable to Cars above 4 meters which is built in to the Ex-Show-room cost. Subtract that and see the real cost of vehicle. Then there is import Duty on components that are sourced from Toyota/Ancillary plants outside India and not manufactured in India.

So after Excise Duty and Import Duty, you pay GST and Cess which is again charged on the same Excise Duty and Import Duty components. A kind of double compounded taxation.

Then subtract the profits/margins of Manufacturer and Dealer which is also built in to the Ex-Show room cost. The real cost of the vehicle including the Manufacturer margin and Dealer Margin is somewhere around ~45% to ~52% of On-Road cost. That is the real truth.

Blame it on taxation but then the funding the govt. needs for the significant growth India is experiencing has to come from all sources and this being a growth industry is low hanging fruit, sadly. This is a debate for another forum and of course there will be questions on leakages and real implementation of these funds (and corruption) but totally off-topic so I stop here.

Yesterday TN also announced Road Tax/Regn. hike to 20% to bring it on par with KA. All governments are looking at sources of income where it is available. Hard truth but it is what it is.