According to an ET report, among the many 47 car models sold as SUVs in India, solely about a third meet the factors set by the federal government for engine capability, size, and floor clearance to qualify as SUVs for GST computation.For instance, the bottom clearance of an SUV needs to be 170 m and better, its size 4 metres and extra and its engine capability 1,500 cc and above!
Total car gross sales rose to a report 4.23 million items within the final monetary yr, up 8.7% from the earlier yr. There has been a huge shift to SUVs, which surpassed a 50% market share for the primary time.
SUV, MUV, KUV?
According to the GST Council’s definition, SUV gross sales amounted to 445,556 items, considerably decrease than the two.13 million reported by car producers. However, this does not diminish the rising desire for SUV silhouettes amongst customers.
Factors such as the SUV’s distinct look, elevated driving place, and tax advantages have appealed to youthful, style-conscious Indian consumers, driving the shift in client preferences.
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India imposes a 28% GST on passenger autos, with extra compensation cess starting from 1% to 22%. SUVs bear the best compensation cess at 22%, leading to whole levies of 50%.
According to trade consultants, SUVs have advanced over time, reflecting modifications in client preferences. While historically related to off-roading capabilities, many SUV models, together with well-liked ones just like the Maruti Suzuki Brezza and Hyundai Venue, lack options like all-wheel drive and don’t meet GST standards. Despite this, they continue to be extremely sought-after, primarily for city use.
VG Ramakrishnan, managing accomplice at Avanteum Advisors, famous that SUV classification has change into extra generic, focusing much less on off-road capabilities and extra on options like physique styling and car peak. This shift displays evolving client preferences in the direction of autos with a greater stance.
The Hyundai Creta led the mid-SUV phase with practically 163,000 items sold final fiscal, regardless of missing off-roading options. In distinction, the Maruti Suzuki Jimny and Mahindra Thar, outfitted with all-wheel drive, are compact SUVs, measuring 3,820 mm and three,895 mm in size, respectively.
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Maruti Suzuki’s transition to SUV-branded vehicles has been remarkably profitable, with models just like the Brezza and Grand Vitara performing effectively out there.
There has been a notable shift within the profile of SUV homeowners, with bigger autos as soon as favored primarily in rural areas now gaining reputation throughout varied demographics, Shashank Srivastava, Maruti Suzuki government council member mentioned.
Tata Motors affords electrical autos just like the Punch and Nexon, along with bigger SUVs just like the Harrier and Safari.
The entry-level SUV phase, together with models just like the Brezza, Venue, and Kia Sonet, recorded gross sales of 1.11 million items final fiscal, making it the most important out there.
Following intently have been midsize SUVs such as the Creta, Grand Vitara, Kia Seltos, and Toyota Hyryder, with gross sales reaching 972,000 items. Premium SUV gross sales, together with models just like the Toyota Fortuner and Hyundai Tucson, amounted to 47,000 items.
