Buying an SUV is a hefty affair as the buyer pays no less than Rs 20 lakh for a premium vehicle. For instance, the Toyota Fortuner, a highly-popular product amongst SUV buffs, is available in the market for a price range of Rs 31 lakh to Rs 48 lakh (ex-showroom, Delhi). If a recent explainer video is to be believed, whenever a Toyota Fortuner is sold, the manufacturer earns a total of Rs 35,000-40,000, and the dealer earns around Rs 1 lakh. When it comes to the government, one sale of a Toyota Fortuner fetches a sum of about Rs 18 lakh in the form of cess and taxes.
The breakdown of this transaction was explained by a YouTuber who runs a channel named Sahil Jain Classes. In the video, the ex-showroom price for a Toyota Fortuner is set at Rs 39,28,000. Of this, the real price of the car is Rs 26,27,000, whereas the remaining amount adds up due to two components of the GST – GST Compensation Cess which is at 22 percent and GST at 28 percent.
This is followed by lieu of other charges inflicted on the overall cost of the Toyota Fortuner. These charges are registration, logistics, FAStag, Green Cess (for diesel vehicles), TCS, Insurance, and Extended Warranty.
The government only gets the money collected from the registration fee and green cess. Therefore, adding all the taxes and fees, the total amount that the government earns adds up to little more than Rs 18 lakh.
Coming to the breakdown for the dealer, the earning on one sale depends on the commission they get on the ex-showroom price of the car which only includes the actual price and the GST components. They also earn commission on insurance, accessories sale and financing. Considering all the calculations, the dealer earns roughly Rs 1 lakh after selling a Fortuner.
The car manufacturer earns the least as they only get a share of the actual cost of the vehicle which is close to Rs 40,000 profit on one car.
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