The Indian market is full of expensive and luxury cars, whose prices are in crores. But have you ever wondered how much the companies and the government earn from the sale of these cars? Generally people believe that companies get the most profit from expensive cars, but the reality is something else.

Toyota Fortuner sales maths

Toyota Fortuner is a premium SUV, whose ex-showroom price is Rs 33 lakh 43 thousand. Whenever this car is sold, the manufacturing company makes a profit of about 35 to 40 thousand rupees per car. At the same time, the dealer gets a commission of about 1 lakh rupees. But the biggest profit goes to the government, which collects about 1 lakh rupees as tax on every sale.

What is the actual price of the car?

In the year 2022, YouTuber and CA Sahil Jain revealed in a video that the ex-showroom price of Toyota Fortuner is Rs 39,28,000 (price at that time). Out of this, the actual price of the car is around Rs 26,27,000. The remaining amount increases due to various GST components. GST compensation is 22 percent and GST is 28 percent.

A look at the government's earnings

Apart from this, other charges are also levied on the vehicle, which include registration, logistics, fastag, etc. By adding all these taxes and charges, the total revenue of the government exceeds Rs 18 lakh.

Difference in earnings of companies and dealers

Companies get a very good margin from the sale of luxury vehicles, and dealers also get a good commission. But, the tax burden on these vehicles is very high. Therefore, the government benefits more from this sale than the companies and dealers. This calculation clearly shows that the government benefits the most from the sale of expensive vehicles, while companies and dealers get relatively less profit. However, it is also true that the sale of luxury vehicles also gives significant profits to companies and dealers, but a huge amount of tax goes into the government's account.

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