Toyota expects prices of its diesel models to move up by 20 percent following BS-VI upgrade.
The organization, which will be a joint venture between Japanese auto major Toyota along with Kirloskar group, said that in order to bring back growth in the industry it was essential to have permanent and long term structural alternatives like reduction in GST rates for automobiles.
In any case, the adverse exchange rate is creating the company contemplate an impending price increase that it’s been holding as of now, he added.
Majority of TKM’s popular versions like Innova and Fortuner are offered with diesel powertrains.
But, considering only the passenger car division, the petrol-diesel ratio is near 50:50.
Raja reported that amid the slowdown, manufacturers and traders were doing their very best to offer bargains to promote customer need. “Discounts are offered by industry basis multiple factors like region-specific festivities, product life cycle, seasonality etc.. Nonetheless, these are only passing measures and that which we need now are permanent answers,” he added.
Raja said the industry was facing tough times since the past couple of months with increasing pressure of low client sentiment. “With sentiments muted, people are deferring their purchase of vehicles, exchange rate differential is not helping people. We seek long term structural modifications like rationalisation of GST structure to get a positive momentum in customer demand from the auto industry,” he noted.
Automobile and part manufacturers are seeking GST cut on automobiles to 18 percent from 28 percent to help the industry come out of a prolonged recession which has caused job losses. The next GST Council meeting will be held on September 20 at Goa.