Toyota Fortuner Continues To Dominate Premium SUV Segment
Toyota Kirloskar Motor, the undisputed market leader in the bigger utility vehicle segment, continues to have a good run in the Indian passenger vehicle market. The carmaker’s 7-seater SUV Fortuner sales were more than four times than its closest rival Ford Endeavour in the first quarter of financial year 2018.
Toyota sold 4,543 units of Fortuner in Q1 of FY2018, as per society of Indian automobile manufacturers (SIAM) data. Last year the company sold 1,999 units of Fortuner in the same period. Meanwhile, Ford sold 1,034 units of Endeavour in Q1 of FY2018 as against 1,508 units in the same period last year.
Both the carmakers’ sales were seriously hampered in June when the economy was preparing to adopt the new taxation policy – goods and services tax (GST). Manufacturers limited their dispatches to dealerships to avoid losses and consumers postponed their purchase, anticipating a fall in price post GST.
All these factors led to timid sales of four-wheelers, especially the SUVs in June. Toyota sold 356 units of Fortuner in June 2017 when compared to 911 units sold in June 2016. Ford saw nearly 85 per cent decline in Endeavour sales last month, selling just 67 units as against 466 units sold last year.
Other notable players, Hyundai Motor India and Isuzu Motors India saw increase in sales in the first quarter on the back of new launches. Hyundai, which has two car in the UV4 segment, Santa Fe and Tucson, sold 294 units in the April-June 2017 period as against 84 units in the same month while Japanese UV maker Isuzu sold 187 units as against 72 units.
Now that the rates are revised post the implementation of GST, carmakers are expecting jump in sales in coming months. N Raja, director, at Toyota Kirloskar Motor (TKM), said, "From July we have resumed normal delivery and we expect to make up for the loss in June in the next three months."
Under the GST regulations, SUVs attracts a total 43 per cent tax (28 plus 15 per cent cess) as against over 50 per cent tax in the previous regime.
Post GST, Fortuner has received a price cut of up to Rs 2.68 lakh. The entry level now comes at Rs 24, 40,900 while the top model is available at Rs 29, 17,700. Ford has also announced a price cut of 4.5 per cent across its line-up.
