Toyota passes cess hike burden to consumers

Toyota passes cess hike burden to consumers

Toyota hikes price of Innova, Fortuner and others by up to Rs 1.6 lakh; passes additional cess load to customers

"Following the ordinance on GST amendment, we have to revise the price of our products in line with the cess hike which may almost reflect the prices in the pre-GST scenario", TKM director and senior VP marketing and sales N Raja said.

The price of Hybrids and small cars remains unaffected post the cess hike.

Toyota Kirloskar Motor (TKM) said on Wednesday it has increased prices of select models, including Innova Crysta and premium SUV Fortuner, ranging between Rs 13,000 and Rs 1.6 lakh. The approximate price increase in Delhi for Innova Crysta will be up to Rs 78000, All New Fortuner up to Rs 160000, All New Corolla Altis will witness a price rise of up to Rs 72000 and Platinum Etios price will increase up to Rs 13000.

However, Toyota has also announced that the prices for its Etios Liva and its hybrid Camry will remain unchanged.

Under the new GST code, the additional cess on mid-size vehicles has been raised by 2 percent to 17 percent, on large vehicles by 5 percent to 20 percent and on SUVs by 7 percent to 22 percent.

With the government notifying levy of increased cess, the effective GST rate on mid-size cars will be 45%, and on large cars it will be 48%.

Automakers have started to work on new prices for their vehicles after the Goods & Services Tax (GST) Council decision on September 9 to hike cess on vehicles.

Most carmakers are likely to also pass on the impact of hike in cess to auto buyers in the coming days.

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