What makes an SUV... in India
The ministry of finance has decided to define AN SUV, and has then followed it up by increasing excise duties for this product classification. The duty has been increased from 27 per cent to 30 per cent.
According to the new definition any automobile that has an engine over 1500cc, ground clearance of over 170mm and an overall length more than 4000mm is classified as an SUV. However, this new definition has also engulfed a lot of the sedans in the market today which sadly are now classified as SUVs. This includes most mid-level sedans like the Hyundai Verna, Toyota Corolla, Maruti Suzuki SX4 and the Renault Fluence. A few of the more premium cars like the Hyundai Sonata too will now be classified as SUVs.
On the flip side, there are SUVs that are still classified as regular cars. For example, the Renault Duster, which uses a 1.5-litre diesel motor, is not an SUV while the petrol engined Duster (at 1.6-litre), is! Similarly, the Mahindra Thar and the Quanto which measure less of 4000mm aren't SUVs any longer; at least not in our government's books.
According to OVERDRIVE a more accurate definition of an SUV would be:
Length more than 4000mm: Passenger cars under 4 metre are already taxed less. The justification is that they occupy less space and cause less congestion. A car that is over four metres is a fairly large car.
Ground clearance equal to or more than 200mm: With the road condition in India being what it is today, it makes no sense to penalise cars that are less likely to break their sumps. If someone really wanted to take a vehicle off-road then 170mm will just not cut it. This is also the reason why actual SUVs like the Safari, XUV 500 and Fortuner have ride heights well over 200mm.
Instead of engine displacement, classification should be based on fuel economy The idea to tax an SUV because it consumes more fuel, and as a result produces more CO2 emissions is justified. But, to co-relate this to engine capacity isn't fair, not with most engines - big or small - today being highly efficient; we have 2-litre engines today with CO2 figures of under 200g/km, after all.
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