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-   -   Why can't Maruti make Gypsy under 4m for tax exemptions? (https://www.team-bhp.com/forum/indian-car-scene/128241-why-cant-maruti-make-gypsy-under-4m-tax-exemptions-3.html)

In the wake of the recent supreme court decision on valuation methodology, manufacturers are likely to play very very safe on the Excise front, to avoid unnecessary disputes with the department.

Relevant Links:

Supreme Court's excise duty ruling throws automobile makers off gear

Major Automobile companies under Central Excise Scanner|Prices to go up??

Question,

If MUL redesigns the bumper/etc to make the Gypsy's length under 4 metres, will it need to be homologated again or will the re-designed bumper/length be sufficient. ?

The Gypsy firstly is not a family vehicle.
Not many people like the gypsy since its too barebones. NO AC and PS even now.
Suspension is a back breaker.
Rear seats are the worst place to be.
Its has a petrol engine.

and Maruti knows all this!

In my opinion the Gypsy is loved as a vehicle that looks rugged, the moment one drives it, i bet 99 out of 100 would not want sit in again, leave alone own one.

With regards to Offroading, i think only people who frequent TBHP know what it is and try to join in. Even after a few offroading demos not many continue for various reasons (me included).

All in all to sum it up, its a no nonsense vehicle alright but it doesnt hold good in todays modern times and no profit conscious firm would want to invest in such an old project and try to revive it. Too much to do and no idea whether the costs will be recovered. Mind over Heart :)

As rightly mentioned by GTO, It doesnt make commercial sense for Maruti to invest in re-engineering a vehicle which is 25 years old:

1. The Gypsy is essentially a rugged vehicle and prefered by defence/off-roading enthusiasts due to its off roading capablity, reliablity, simple construction and light weight. While the earstwhile Jongas & the MM540 were needed to be pulled by another 4x4 vehicle once stuck in sand, I have seen gypsys being recovered by simply being lifted by 6-7 Jawans with bare hands!

2. Even if it is looked at from the point of view of being made into a new-gen compact SUV, it would never be able to match the city driveability, fuel efficiency levels, ride quality, creature comforts & safety equip.(ACC.,ABS, Air Bags etc) that will be offered by the coming new entrants (Duster, Ecosport & ofcourse XA Aplpha). Gypsy is a Body on Chassis construction while the newer C-SUVs are all Monocoque constructions

3. Even if all the above are acomplished and we have a Gypsy that is under 4 meters and has incorporated a new engine and has all bells & whistles thrown in, the vehicle will loose its most important USP - "Price"

4. Also, even if a re-engineered gypsy is launched at the same price point, wont it cannibalise the sales of the awaited XA Alpha? And if we look at it logically, the XA alpha is the new avtaar of the gypsy -:D


Honestly, I am myself a Die hard fan of the current avtaar of the Gypsy but it always leaves me asking for a little more. Though even I would love to have a Hard top gypsy which has 4 doors, a hard top that doesnt look ugly, has all the features that a top-end premium hatch has. But I know as much that its not going to happen as I know that I am never going to get a Genie who grants me my 3 wishes!:D

Posting one of my favourite pics. I call it "The dilemma":

All Maruti has to do is shorten the length of the gypsy by a mere 11mm,a new smaller rear bumper will solve that problem.I am sure the Indian army will also be happy since it will save them some few thousand bucks on their annual budget.

Change of engine or modifications to the body shell will definitely need to be homologated. If it is just the bumpers, then I don't think there is any need for homologation.

However, it would be a waste of time, money and resources without an engine change as Gypsy would still have the 1.3L engine. With an engine change to 1.2L, it would involve huge testing/homologation costs. What would Maruti's gain be out of this exercise? Nothing.

Max savings out of the duty would be around 60-70k. For anyone planning to go for a Gypsy now, that difference wouldn't be a deal breaker. If he really wants a Gypsy, he would still buy it at the current price. For folks who feel a new Gypsy is currently overpriced, they would still think it is overpriced with a tag that is 60k lower and hunt for used examples.

Please read through this thread; it has been mentioned multiple times as to why it would be more profitable for Maruti to continue the way things are.