The strict emission norms of BS-VI are nearing by the day and the makers are also bracing up for the same. While some are going for no diesel cars at all initially, Maruti Suzuki being an example, other like Tata are going the no diesel route for their smaller vehicles. Meanwhile all the maker who decide to continue with diesel cars in the market will see the prices of their products rise by a significant margin when compared to the petrol vehicles. One such maker is the Japanese giant Toyota. Toyota's two bestseller in the Indian market -- Fortuner SUV and Innova Crysta MPV -- sell a lot of units in the diesel segment. This means that the prices of the diesel-powered Fortuner could rise by up to Rs. 4.5 lakhs and the diesel-powered Innova Crysta MPV too may see a price hike of around Rs. 3-4.5 lakhs come BS-VI norms in 2020. Now it is only natural that the people who have been planning to buy a Toyota vehicle make their way toward the showrooms some time before the prices go up and make their purchase. The compliance to BS-VI emission norms will mean that the prices of Toyota's vehicles in India may rise by up to 15-20%.
Speaking to a leading daily, the deputy MD of Toyota Kirloskar Motor India stated that the company is looking at increasing the prices of their products by a margin of up to 20%. He expressed hopes that considering the price hike in the BS-VI emission regime, he expects the sales to go up during the time BS-IV emission norms are still in place. This would mean that the Japanese maker expects the sales in India to pick up ahead of the April 1, 2020 deadline. The deputy MD of TKM also stated that the final price of the vehicles in the BS-VI era has not been finalized and it is still under consideration, but a hike is sure in order.
Talking about the cab sector in India which accounts for a large segment of the sales of the Innova Crysta in the market, the deputy MD of TKM N. Raja stated, "We are looking at the fleet segment and employee transport and shared mobility, where diesel vehicles are used and there is price sensitivity. They would be better off buying BS IV than going for BS VI." He also added that the company is "trying to educate our customers, particularly in fleet and employee transport, shared mobility, tell them the cost increase that is going to come and try to provide them solutions accordingly, either BS-IV or BS-VI, to suit their needs".
This is a strong signal from one of the largest makers in the world for the Indian market. It seems that the Japanese maker is moving away from the value proposition in the Indian market, something it was known for when it arrived in India. Both the Innova and Fortuner from the brand were considered well-built and value-for-money propositions in the market when they were launched. Now that the company has given the customers a signal to rush for purchases ahead of the imminent price hike, it remains to be seen how the market reacts to the same.