Toyota Tooling Qualis Upgrade

Toyota Kirloskar Motors Ltd is readying an upgraded variant of its multi-utility vehicle Qualis for launch early next year, according to top sources in the company.

The new vehicle graded GTS Super will be based on the Qualis platform and is likely to sport a price tag higher than the existing variants of the MUV.

It will also have an upgraded engine and several new technical features. The existing Qualis range has three main variants (with 13-14 sub-variants) -- FS, GS, and GST -- and is priced between Rs 5 lakh, for the GS variant and Rs 8 lakh, for the high-end Qualis GST.

 

In addition to these, the company has also recently launched a limited 'festival' edition of the MUV with a target of 400 unit sales during the ongoing festival season.

Toyota Kirloskar recently signed a royalty payment scheme with its Japanese parent, Toyota Motor Corporation.

The agreement signed during the end of July, through an amendment to the existing technical and royalty agreement of April 1998, entails the Indian joint venture manufacturing subsidiary will make payment for both technical know-how and new licensed product, that is GTS Super.

For production preparation, the company will pay technical assistance fee of YEN26,550,000, while another YEN17,490,000 will be paid against despatch of the licensors instructors, making for a total technical assistance fee of YEN26,550,000.

Royalty will be paid at the rate of five per cent on domestic sales and six per cent on exports. On original equipment and spare parts, royalty would amount to 3 per cent.

On the same day, Toyota Kisloskar also signed another technical assistance and royalty agreement with its parent for a passenger car code-named 679N, which is due for launch next year or latest by January 2003.

While the royalty payment plan for the same is similar to the one of the GTS Super, technical assistance fee amounts to an aggregate YEN283,200,000. Of this, JPY 291,570,000 will be paid against production preparation, YEN 89,280,000 against training of licensee personnel and YEN283,200,000 for despatch of the licensors instructors.

All the proposed payments are subject to taxes in India, a source providing details of the company's plans, told Business Standard.

The proposal need the clearance of the department of heavy industries and the secretariat of industrial assistance in the union commerce and industry ministry, he added.

The company's existing technical and royalty agreement with the parent, for the existing Qualis MUV, entails a total technical assistance fee of YEN1,152,000,000 along with an additional payment of YEN8,988,900 and royalty not exceeding 3 per cent of domestic sales for accessory parts, 5 per cent on internal sales and 6 per cent on exports.