Mahindra XUV500 ducks excise duty and saves you Rs 33000 - Rush Lane

We all knew it was coming, and finally the word is out. Mahindra has revealed that they are ready with their new XUV500, with lower ground clearance. This will result in a price cut of Rs 33,000 as Mahindra XUV500 with lower ground clearance falls in the 27% excise duty segment, against 30% earlier. Mahindra & Mahindra, India's largest utility vehicle manufacturer, has announced a soon to be launched, cheaper variant of XUV500. Slated to arrive into markets this fiscal, the more economically priced XUV500 will be priced INR 27,000 to INR 30,000 less as compared to the current model in the market. The news was revealed by Dr Pawan Goenka, President, Automotive and Farm Equipment Sector, Mahindra & Mahindra, in a chat with Times of India. M&M launched XUV500 in 2011. Today, the SUV is priced from INR 12.13 lakhs to INR 14.77 lakhs. 2013 Union Budget brought with it additional excise duty of 30% as against an earlier 27% for SUVs having engine capacity above 1500cc, lenght over 4  meters and ground clearance over 170mm. This, the Government stated, was due to the fact that these vehicles occupy greater road and parking space. The company immediately set about making plans to revamp their lineup to ensure that the new model falls within this tax bracket. Since it's launch in 2011, XUV500 has clocked sales of over 63,000 units. Sales however have been steadily declining with only 2,200 units sold in May this year. The new variant of XUV500 will be seen with ground clearance of 160mm as against the earlier 200mm which will ensure that it contributes to 3% saving in excise duty. Besides this, the company is also making adjustments where electronics, brakes and clutch of the more economical variant is concerned. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHmiDALxvTVckDJf9fQZ-WehRpxYQ&url=http://www.rushlane.com/mahindra-xuv500-ducks-excise-1283217.html

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