Mahindra plans to tackle SUV excise duty hike

Posted on: May 2, 2013 - 12:39pm IST

Mahindra Bolero frontThe Union Budget 2013 is forcing auto manufacturers to find a way to go around certain factors to get rid of the excise duty hike.

Mainly the budget highlights three important propositions that put a stranglehold on engine capacity (1.5L), vehicle ground clearance (170mm) and the bumper-to-bumper length (4m) to classify a car as an SUV. Anything that exceeds these limits are hit by the excise duty hike.

The three parameters are so vital that it will result in an excise duty hike of 30%. Mahindra, whose model lineup is filled with SUVs, had to react to this. In a recent interview with CNBC TV-18, Dr. Pawan Goenka, President, automotive sector, Mahindra, has revealed that company is working on “redefining” its existing models to escape additional excise hike.

He hinted that it is possible for his firm to downsize the engine capacity of some of its products to below 1.5 litre. The 1.5L mCR100 diesel engine that powers the Quanto could come into picture. However, Dr. Goenka did not mention about the models that are being redefined. For instance, plonking that engine under the hood of the Bolero would help it evade the duty hike.

Even though the ground clearance factor is very crucial to tackle Indian roads, Mr. Pawan Goenka said that measures would be taken to stick with the 170mm ground clearance rule.

However he was quick to point out that not all Mahindra SUVs could escape the duty hike. He also expressed his disappointment that the SUVs are singled out by the Union Budget.

[Source: Young Turks facebook page]

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One thought on “Mahindra plans to tackle SUV excise duty hike

  1. nitin says:

    i m big fan of mahindra XUV, Scorpio and Bolero. one thing in my mind always hitting that why mahindra is not working on its best seller bolero for up gradation it can be small engine wich can give mileage around 22kmpl. see in my opinion every body like xuv500 and scorpio but they are costlier then bolero. on other hand bolero has a very good shape and size not too big like xuv and scorpio or not to small like upcoming S101 or duster ecosports all are 5 seater . As a indian buyer i want a proper mid size suv having 7 to 8 seating capacity and good fuel efficiency only one car is there maruti eartiga but thats a mpv not proper suv. i think bolero modified can fill the gap so that i can drive that car to my office or when ever i want to drive my car with may family for outing that car will be sufficient for two small family 4 elders with 3 kids or so.

    above i m trying to convey that bolero has a great potential regarding size and shape to carry 7 to 8 people but in other hand it currently looks like villagers car not an urban car. scorpio and xuv500 looks good but they consume more diesel and bit bigger to go office in heavy traffic. i think bolero should be look like mini scorpio and also having same interiors with 7 to 8 seater option with milage 22 kmpl this will win all the xuv 500 recors every body run to buy mini scorpio with 7lakh price tag.

    what u say am i right !


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Surendhar M

I'm fanatical about two things in this world: 1. Automobiles 2. Motor Racing.