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Tata Nexon, Mahindra XUV300, Hyundai Venue, Kia Sonet & More Sub 4m SUVs To Get Cheaper – Check Out All Detail
Union Finance Minister Nirmala Sitharaman recently chaired the 49th GST council to establish a new criteria to classify vehicles as 'SUVs'.
This decision is much appreciated as almost all car manufacturers in India havee started using the term 'SUV' quite liberally on their vehicles. With this new decision, the prices.of the sub-4m SUVs are likely to become even more affordable.
That being said, taxes on an SUV goes up to 50 per cent of the actual cost of the SUV. Moreover, these taxes consists of Excise tax, VAT, road tax, motor vehicle tax and the previously mentioned GST. Moreover, it is also worth mentioning that the sub-4m SUV already benefit from the 'small car' tax in India.
However, under this 'small car' segment, all the vehicles under 4m in length and engine displacement less than 1.2-litre (petrol) and 1.5-litre (diesel) are considered as 'small cars'. Now with the upcoming new criteria, cars with engines displacing more than 1500cc and cars having ground clearance above 170mm will be termed as SUV. It is also worth mentioning that the vehicle must exceed 4m in length to be termed as an SUV.
This means the current crop of "Sub-4m SUVs" such as the Tata Nexon, Mahindra XUV300, Hyundai Venue, Kia Sonet, Nissan Magnite, and Renault Kiger cannot be termed as an SUV and will now attract a much lower GST. That being said, more clarification on the matter is said to be on its way and it will help clear more air surrounding the news.
Thoughts About Sub-4m SUVs Getting Cheaper
After the implementation of the new critera, we expect car manufacturers in India to makes some minor adjustments on their respective "Sub-4m SUVs" to comply with the new rules to benefit from the lower tax bracket. It is also worth mentioning that car manufacturers in India will not call any random model as an "SUV".
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