Toyota Kirloskar Motors (TKM) has announced a price hike ranging between Rs. 9,500 to Rs, 80,000 across all its models. Prices were hiked following the 2 – 4% excise duty hike announced in the 2012 Union Budget.
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As per the 2012 Union budget, the excise duty for small cars has been hiked from 10% to 12%. Small car buyers will have to shell out an additional 2% excise duty. Hence, the prices of Toyota Liva small car have been hiked by Rs. 9,500 for the petrol variants and Rs. 11,500 for the diesel variants. Also read: Toyota Etios Liva video review
Similarly, the excise duty for large cars with engine capacity less than 1.5-litres has been hiked from 22% to 24%. The Toyota Etios entry sedan will now cost an additional Rs. 11,500 for the petrol variants and Rs. 13,600 for the diesel variants. The Toyota Corolla Altis diesel powered by the 1.4-litre engine also comes under this excise duty range and will cost an additional Rs. 26,500.
For large cars with engine capacities of more than 1.5-litre such as the Tata Sumo, the excise duty has been hiked from 22% to 27%. Therefore, the price of the Toyota Corolla Altis has been hiked by Rs. 39,000 for the petrol variants. Toyota Innova prices have been increased by Rs. 35,200 across all the variants and the Toyota Fortuner premium SUV prices have been increased by Rs. 80,000 across all variants.
The import duty on completely built units (CBU) cars has been hiked from 60% to 75%. However, Toyota is yet to announce the price hike for its CBU cars such as the Land Cruiser SUV, Prado SUV and the Prius sedan.
“A rise in excise & import duty and input costs will not be very conducive for the auto industry as the additional burden of increased duty will directly affect the buyers and hence would lead to slowdown in sales,” Sandeep Singh, Deputy Managing Director, Sales and Marketing, Toyota Kirloskar Motor was quoted as saying by a news agency.
He added that the CBU prices will also be affected on account of a rise in customs duty and hence, we have no choice but to pass on the price increase to the consumers. Sandeep mentioned that the average increase in price ranges from 2 to 4 percent.