Mahindra is eminent for its Sport Utility Vehicles (SUV’s), the XUV500 is built with inventive and world class technology. Since launch the consumer response for this car has been amazing. Mahindra has now emerged with techniques to reduce the ground clearance of XUV500 by inserting a stone protector below the mill. The main initiative of the Government is to build a more compact XUV500, this is a point of concern the cost of the car might increase by Rs 30,000.
The Government has proposed a policy with respect to ground clearance stating that compact cars which measure more than 170mm will fit into the SUV category. This has enabled the company to restructure the XUV500 to enjoy more attractive tax benefits of below 27% compared to30% used for most SUV’s.
Mahindra has indeed emerged with a practical solution to reduce the ground clearance of XUV500, using a stone protector. This has lowered the ground clearance to 160mm from the earlier figure of 200mm. With this technique Mahindra can now escape additional excise duties, which is branded for vehicles which cross the required ground clearance mark of more than 170mm; cars which meet such requirements are branded SUV’s. This policy is fabricated by the Indian Government.
According to a statement by the company, the Government is analyzing vehicles which are weighed down, the ground clearance has extended the required norms, and hence the ground clearance of the car is increased by around 30 to 40mm, and this would result in higher taxes, the aim to lower stone protector might not be practical, since this would increase room for damage to the lower portion of the car when brakes are applied. If the new policy comes to force, the company might not have the resources to modify car and would have to move with the flow by accepting tax.
The new regulation proposed by Indian Government will lead to some undesirable consequences, there will be extra tax charges, the increase in ground clearance might damages the under surface of vehicles during immediate brake application and lastly the increase in price.
Those who are keen to purchase the XUV500, this might be the best time and grab the car before its value is Rs 30,000 higher when revised excise duties come to light.
The XUV500 has created an overwhelming public response; Mahindra has registered heaps of profits with this car. This car has created some cut-throat competition in Indian market; other reputed firms are even today few years after the cars launch have built models to offer stiff competition with XUV500.
The Indian government has introduced excise policies for ground clearance which might not be an attractive initiative since higher tax figures come to play which is rather unfavorable especially with the current Indian market conditions. Mahindra might be concerned with the lower buying power for the car with the increase in input costs caused by depreciating rupee value.
The XUV500 is eminent for its remarkable engine power, safety and interior comfort. This car along with other quality SUV’s of Mahindra are employed in some thrilling adventurous events.