The huge wave of GST in India has washed some sectors; some managed to stay on the float, while some rode the wave right through the top. Automobiles sector was among the top surfers.
Toyota Kirloskar Motors dominated the chart. It managed to sell more than 9,300 units of Innova Crysta, which is the highest figure for Toyota globally. While, 3,400 units of Fortuner were sold, which witnessed a highest monthly sale ever since the launch in November 2016.
The taxation relief and roll out of GST delivered a great advantage for the utility vehicles manufacturers that too in an immense way. Toyota Kirloskar Motor that saw restraining sales in June witnessed a huge bounce back with the overall sales figures reaching 17,750 units in the Indian market in July 2017. This was the best performance in the year, reporting a growth by 43% YOY. In July 2016, total 12,404 units were sold.
TKM’s sales is unexpectedly been motivated by immense buyer demand for new Fortuner SUV and Innova Crysta MPV. In cooperation, it is the highest ever unit sales since introduction in November 2016 and May 2016 respectively.
Director and Senior VP (Sales & Marketing), Toyota Kirloskar Motor, N Raja while talking about the monthly sales stated that we are grateful to the government for implementing GST, which is the largest indirect tax reform of the country. The tax reform enabled us to uphold the double-digit growth. Pre GST implementation phase in June, we reduced the volume of vehicle sent to the dealers to ensure that there is a minimum burden on them after GST. Hence, following such strategies we are presently at a successive position by achieving best ever sales in July.
“Other segment vehicles such as Etios Liva, Corolla, and Platinum Etios also saw a positive growth in the month after GST execution,” he added.
On the other side, the demand for Camry Hybrid significantly fell owing to the increase in price as per the GST system. We anticipate the government would re-establish the privileged (lower) tax rate in support of green and clean technologies such as hybrids. This will not only force the consumer to choose the advanced technology over diesel and petrol vehicles but will also advance the economic feasibility.