The Toyota Land Cruiser is a luxurious and powerful SUV that has a reputation for off-road capabilities and durability. However, in India, the Land Cruiser comes with a hefty price tag. Many consumers may wonder why this is the case. The reason for the high cost of the Land Cruiser in India is a combination of factors, including import duties, the small luxury SUV market, and limited availability. In this article, we will explore these reasons in more detail and why the Land Cruiser remains in high demand despite its high cost.
In India, luxury vehicles like the Land Cruiser are subject to a higher import duty, which raises the cost of the Vehicle. Additionally, luxury cars attract a higher Goods and Services Tax (GST) rate, which further increases the price.
Another factor that contributes to the high price of the Land Cruiser in India is the cost of production. The car is built with advanced technology and features, which can be expensive to manufacture. Additionally, the Land Cruiser is a luxury SUV and is marketed towards a high-end consumer, which means that the company can charge a premium for the vehicle.
Finally, the Land Cruiser is imported from foreign countries and it will incur additional costs such as customs, freight and other logistics expenses, which results in higher prices than vehicles that are manufactured in India.
Therefore, the combination of import duties, taxes, production costs, and marketing as luxury vehicle are the main reasons why the Land Cruiser is so expensive in India.
When a vehicle is imported into a country, there are several costs associated with the import process that can add to the overall price of the vehicle.
In India, the taxes and duties associated with importing a vehicle include:
- Customs Duty: The customs duty on imported vehicles in India ranges from 40% to 75%, depending on the type of vehicle and engine capacity.
- Additional Customs Duty (CVD): An additional duty of customs equivalent to the central excise duty on similar goods manufactured in India is levied.
- Special Additional Duty (SAD): Special Additional Duty is levied at 4% of the aggregate of the value of goods and CVD.
- GST: GST on imported vehicles is levied at 28% plus an additional cess of 15% on luxury cars.
- Infrastructure Cess: An infrastructure cess is levied on certain imported vehicles at a rate of 1% to 7% depending on the type of vehicle.
- Road and Registration Tax: This is a state-level tax, and the rate varies depending on the state where the vehicle is registered.
- Import Clearance Fees: An import clearance fee is charged by the government for processing and clearing the vehicle through customs.
According to the Tax structure of India, Tax and duties for 2023 Land Cruiser will be between 140% – 165%
The new-generation Toyota Land Cruiser LC300 has made its public debut in India at the Auto Expo 2023. The flagship Toyota was silently brought to India a few weeks ago with order books open for a while. Select dealerships unofficially accepted bookings months ago for the SUV. The model is now available for a starting price of ₹2.10 crore (ex-showroom, India) and deliveries are set to begin towards the end of the month. An official announcement is likely to happen soon.
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