So, the repercussions of the Union Budget 2013 are pouring in! Though we favor the sub-4 meter excise duty structure as it promotes smaller and technically superior cars. However, the latest ruling on the basis of ground clearance is utter rubbish.
According to the latest laws, vehicles which are longer than 4 meters, with a bigger than 1500cc engine and a ground clearance of over 170mm attract 30% excise duties instead of the earlier 27%. This is a significant 3% increase which has resulted in the XUV5OO loosing out a significant bit of its price advantage.
And with the competition gunning down from all corners, they had to retort to a step which makes a mockery of the makers who drafted this law – reduction in the ground clearance of XUV5OO. So, Mahindra is all set to launch a new cheaper variant of XUV5OO which will come with a ground clearance of only 160mm. To achieve this, Mahindra has installed a ‘Stone Guard’ under the engine which will also protect the engine from underneath.
Economic Times reports that the new variant will also come with a few changes to the electronics, brakes and clutch system of the lower XUV5OO. Pawan Goenka, President of Mahindra and Mahindra, also revealed that these changes will result in a price reduction of Rs 27,000 and Rs 33,000. He also shared his disgust at the ruling and said
I am not happy about doing this, but we had to do it as the higher price due to the increased duty was hitting our potential customers.
Other Mahindra SUVs like Scorpio and Bolero are also affected by this ruling and their is an alteration possible on them as well but Mr Goenka said that nothing concrete has been decided on these vehicles so far. Launch of this cheaper XUV5OO is slated to happen very soon.
So, will you want to own an SUV which is just 160mm above the ground? Will you buy this cheaper XUV5OO?