[searchingheaven]

Mahindra & Mahindra may consider modifying some of its products owing to the 3 percent additional excise duty imposed on SUVs here.


After the Union Budget 2013-14, SUVs that have an engine of 1500cc or above, a minimum ground clearance of 170mm and a length of 4 metres or more attract 30 percent excise duty, instead of 27 percent earlier. This has apparently taken a toll on the sales of this class of SUVs and sources say sales have dropped by 14 percent in April 2013, as compared to April 2012.

The easiest way for M&M to duck the additional duty would be to reduce the ground clearance on some of its SUVs. Most SUV owners here prefer to stay on tarmac with these vehicles anyway.
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For the complete article, visit: Autocar


Mods, please merge/delete if already posted or discussed.

[SDP]

Has been shared here:
http://www.team-bhp.com/forum/indian...ml#post3112228

But, may be deserves a separate thread to explore "how" M&M plans to do it.

[CrAzY dRiVeR]

Originally Posted by searchingheaven

we are perplexed about the criterion and justification of this additional duty.

Well - Mahindra - you are not the only ones! A 1.6L Linea will classify as an SUV based on the new govt rules.

I guess Mahindra is really concerned with the record sales for Duster this month, compared to the Scorpio. And Duster does not classify as an SUV, while Scorpio/Xylo and XUV 5OO does.

[mroptimist]

Originally Posted by searchingheaven

Source: Autocar


Mahindra & Mahindra may consider modifying some of its products owing to the 3 percent additional excise duty imposed on SUVs here.

Why thumbs down for this thread?

When Government of India (FM Chidambaram in particular) wants to play dirty with auto industry I guess even the auto manufacturers can also reciprocate.

From a consumer's perspective (a peospective SUV owner like me) I want every manufacturer to follow M&M.

[fiat_tarun]

With the Duster overtaking the Scorpio in sales last month, Pawan Goenka is right to express his frustration to this rule, since the Duster does not qualify as a SUV as per the excise definition !!

While tweaking ground clearance can be an immediate solution, Mahindra should work on reducing the weight of their vehicles. Maybe then a sub 1.5L engine will suffice to move their SUV's...

[SDP]

As per my understanding, the definition as per govt is:

"Sports Utility Vehicles (SUVs) = Motor vehicles of engine capacity exceeding 1500 cc AND of length exceeding 4000 mm AND having ground clearance of 170 mm and above."

Its an AND of 3 conditions. So if a manufacturer like M&M is able to adjust on ANY ONE of those 3 parameters, their vehicles would no longer come under the "Govt defined SUV" category.

I would dislike if M&M plays with the length or the ground clearance. Smaller capacity engines (coupled with lower overall weight) would be more than welcome.

[rohanjf]

How can SUVs have less than 170 mm GC? Even if they introduce adjustable suspensions (as in high end SUVs), the cost will be far higher than this extra 3% tax.

I guess only Thar can be easily modified. Put the 1.5 from Quanto, and voila, the sub-4 meter Thar will no longer be SUV. It will be a small car with 12% excise duty!

A little OT, but on a similar note: will Duster petrol be discontinued? That, by definition, is SUV!

[AyAn!]

Originally Posted by SDP

"Sports Utility Vehicles (SUVs) = Motor vehicles of engine capacity exceeding 1500 cc AND of length exceeding 4000 mm AND having ground clearance of 170 mm and above."

Who on eatrh makes these rules? Oh come on man, the Indian auto industry has matured and grown enough to demand some specialised people in those damned government buildings rather than the ignorant punks who go about making such vague and half-baked statements that literally sculpt future plans for most important manufacturers in the country. Though it might give rise to new India-specific segments, it would have an adverse effect on the charcter of the cars we'll see on our roads and might certainly put off other potential manufacturers.

These statements should be more specific,broad-minded and elaborately panned out, all in the interest of keeping the idea of the automobile safe. They might as well pick a leaf from other developed countries on this one.

[SmartCat]

As a side effect of lowering the ground clearance, Mahindra SUVs' handling & cornering abilities should improve a couple of notches. Good for consumers!

[ACM]

Originally Posted by smartcat

As a side effect of lowering the ground clearance, Mahindra SUVs' handling & cornering abilities should improve a couple of notches. Good for consumers!

Actually true a Xylo or a quanto are not taken off road and the lower the ground clearance (say 150) the better it will ride on the roads for which they are actually designed. They have two variants of the Scorpio and XUV as well with the 4X2 versions coming in a Short Height version for better road manners at a lower price point.

So we have a term called SWB - Short Wheel Base - better at off-roading but short on inside space.
Now we may have SRH - Short Ride Height - poor at off-roading but good on inside space.

[tsk1979]

Originally Posted by rohanjf

How can SUVs have less than 170 mm GC? Even if they introduce adjustable suspensions (as in high end SUVs), the cost will be far higher than this extra 3% tax.!

Just add a small plastic low hanging guard under the bumper. GC is lowest point. So 170mm will be breached, and this plastic is anyways useless so even if it hits or breaks who cares.

[saket77]

Originally Posted by tsk1979

Just add a small plastic low hanging guard under the bumper. GC is lowest point. So 170mm will be breached, and this plastic is anyways useless so even if it hits or breaks who cares.

This is now what we call a clever ducking. As for strange rules, there are stranger solutions! So, ideally, a vehicle that might comeout from the factory with this anti-SUV treatment can be modified/ upgraded to an SUV just by breaking or taking out this plastic part!

[rajshenoy]

Originally Posted by tsk1979

Just add a small plastic low hanging guard under the bumper. GC is lowest point. So 170mm will be breached, and this plastic is anyways useless so even if it hits or breaks who cares.

They already have done it to Scorpio Those bumper plastics are a pain on steep angles.

But what an India sir ji..

[revintup]

A lot of people buy SUVs so as to survive the huge 'direct meteorite hit' like craters on our roads.

Also take into account totally unscientifically designed speed breakers which are more likely to break your axle or your back bone depending on whether you ride a car or a bike.

A Scorpio with <170 mm clearance? That would be like a scorpio(n) without its sting !

I guess the basic aim of this excess duty would be to ensure more fuel efficient vehicles on the road. So would not a simple fuel efficiency based tax structure be more effective? It would also lead to better technology filtering thru to the masses.

[tsk1979]

Originally Posted by revintup

I guess the basic aim of this excess duty would be to ensure more fuel efficient vehicles on the road. So would not a simple fuel efficiency based tax structure be more effective? It would also lead to better technology filtering thru to the masses.

Babudom always believes in taking the easy way out. Due to this a car of 3999mm length pays 12% but if the car has 4001mm length it pays 12% more.
A simple size based (eg 100mm extra = 1% extra excise over base), or a FE based tax, eg take 15kmpl baseline, and every 1kmpl less is 1% extra kind of tax is more logical. But it will take work and effort to come up with such a fair law.

So they do what they know best. Some simplistic guideline totally pointless.