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Government Could Modify Ground Clearance Rule For SUVs
If you remember, Mahindra & Mahindra came up with a rather simple solution to the problem of higher excise duty for SUVs. Since the government charges 30 percent excise for vehicles with a ground clearance of more than 170 mm, the manufacturer lowered that number for its XUV500, from 200 mm to 160 mm.
Mahindra did this by the simple addition of a stone guard. Not only did this save the company money by not having to spend on any major redesign, but it also meant the XUV500 would cost about Rs 30,000 less wihout the added tax.
Following this development it seems the authorities have had a rethought regarding how the ground clearance rule is to be implemented. As of now the measurement is done with the vehicle fully laden. But if the said revision to the rule is brought into effect that measurement would have to be taken with the vehicle empty.
Will this lead to a cat and mouse game between M&M and the government? Highly unlikely. Lowering the ground clearance further on XUV500 is not a viable option for Mahindra as such a change would compromise its off roading capabilities further.
"If this new regulation comes in we won't be able to modify our cars and will just have to accept the SUV tax" Dr Pawan Goenka, president of M&M said. "We will have to pass on the additional cost to customer."
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