Mahindra & Mahindra to roll out cheaper XUV500 model - Times of India

"The price of the XUV500 will go down by between Rs 27,000 and Rs 33,000 as we produce the vehicle with the new specifications," Pawan Goenka, president of Mahindra & Mahindra, told TOI. The author has posted comments on this articlePankaj Doval, TNN | Jul 8, 2013, 02.08AM IST NEW DELHI: Get set for a cheaper XUV500 SUV from Mahindra & Mahindra as the company has reduced the ground clearance of the vehicle to avail lower excise duty. The ground clearance, which was 200mm earlier, has been cut to 160mm, giving the company a 3% savings in excise duty on the vehicle. "The price of the XUV500 will go down by between Rs 27,000 and Rs 33,000 as we produce the vehicle with the new specifications," Pawan Goenka, president of Mahindra & Mahindra, told TOI. The government had announced in the Union Budget earlier this year that SUVs having engine capacity of over 1,500cc and ground clearance upwards of 170mm will have to pay an excise duty of 30% against 27% before. While the government justified the higher duty on the "greater road and parking space" the vehicles occupied, many in the industry cried foul over the move as only a section of vehicles fell within the definition that slapped higher duty. The maximum brunt of the new definition was borne by domestic companies like Mahindra & Mahindra and Tata Motors. Companies have now started making changes to their existing line-up so that they fall in the lower- duty bracket. Goenka said the changes are possible in the company's other vehicles too, but no concrete decision has been made on this so far. Mahindra's other vehicles that attracted higher duty after the Budget include the Scorpio and the Bolero. Asked whether the lower ground clearance on the XUV500 will compromise the vehicle's performance as an off-roader, he said the company had added a "stone guard" under the engine to protect from uneven roads. "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." Apart from lowering the ground clearance, Mahindra has also made certain other changes to the XUV500 in areas like electronics, brakes and clutch systems. New specs for lower excise M&M has cut the ground clearance of the XUV500 from 200mm to 160mm Move comes after govt raised excise duty to 30% from 27% for SUVs of over 1,500cc capacity and ground clearance of more than 170mm The new XUV500's price will be Rs 27,000-33,000 lower M&M has also made some changes in the SUV's electronics, brakes & clutch systems via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFL8apZ3JHNquOpO1xOCJvtzpQSeg&url=http://timesofindia.indiatimes.com/business/india-business/Mahindra-Mahindra-to-roll-out-cheaper-XUV500-model/articleshow/20962676.cms

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