Ad Here  
Vodafone slapped with tax notice of Rs 3700 crore SpiceJet in the news again Lanco to sell Australian acquisition GMR to raise US $ 250 mn thru QIP Wal-Mart studying FDI norms post split with Bharti Smartphone prices may change Kolkata kisses goodbye to Ambi? Canada screams over IT outsourcing to India Aircraft lessors to get protection from defaulting airlines Vodafone to buy out minority shareholders Infosys not to cut prices Jet-Etihad Rs 2000 plus crore deal to be cleared Excise duty may halt the war in SUV market How important is Modiís German visit... Airlines hit by service tax on lease Automobile sector in slump... Latin America beckons India for investments Fox Star Studios to tie-up with Bolly-wood and Kollywood ONGC to draw down on reserves to meet CAPEX needs Urja Sangam in Delhi Renault revving up small car launch Carlyle invests in Trehanís Medanta Medical Centre Capital Notes Flipkart India in the red by Rs 280 crore Hyundai Grand i10 awaiting launch LANCO opens negotiations with buyers for Karnataka power plant TVS bullish on the two wheeler market? Hunt for new finance secretary on... Plans to double trade with Latin America Trends point to a hung assembly TCS, Indiaís biggest block buster German envoy Steiner caps a language row Singapore Airlines prefers Airbus While MoTown is on a tailspin, the telecom sector is staging a rally
Excise duty may halt the war in SUV market

Just when the  price war was hotting up in the SUV segment, the government has thrown a spanner in the works.  Automakers Maruti Suzuki, Renault, Ford, and the Mahindras were locked in a fierce competition for the new space in the automobile segment, namely Sport Utility Vehicles (SUV).

SUVs were not selling well because of their expensive price tags. But Renault set the roads scorching when it introduced the Duster at an entry level price of Rs 7 lakh. SUVs never came that cheap before. Mark it, Voyager or Land Cruiser sell between Rs 40 lakh and Rs 50 Lakh.

Mahindra saw unprecedented success with its SUV 500, an aggressively styled vehicle. It was an instant sell out; its sales have been so good  that the model has a waiting period of three months for delivery.

But the government’s decision to increase the excise levy for cars with ground clearance above 150mm is going to increase prices by about Rs 30,000 to Rs 50,000 for each car as most SUVs have a ground clearance above this limit. The companies have decided to lower the ground clearance to 140mm to escape the enhanced excise duty and hold the price line.

Whether lowering the ground clearance for the SUVs will interfere with the safety standards of the vehicle is another question.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236