SUVs/MUVs Price Hike: The confusion regarding the 22 per cent cess on SUVs and other cars has been removed. Now all UVs, be it SUVs or with any body type, have been included in the 22 percent cess category. This means that SUVs and MUVs will now come under the same bracket. But this would also mean that some SUVs with 20 per cent cess will not cost more than those in the 22 per cent cess category.

SUV, MPV, MUV etc. does not matter, but according to the basic parameters, the length of the vehicle is more than 4,000 mm, unloaded ground clearance of more than 170 mm and engine displacement of more than 1.5 liters. These cars will now attract 22 percent compensation cess in addition to 28 percent GST. While earlier only some vehicles known as Sport Utility Vehicles used to attract 22 percent cess. Though it is clear, sedan vehicles will not come under the higher cess. While hybrid cars like the Hycross will still attract a lower rate of 15 per cent cess. But when put together in the higher cess bracket, the MPVs will become more expensive overall. Due to this, an increase in the prices of some SUVs will also be seen. Because their unloaded ground clearance meets the norms.

As a rule, compact SUVs with low engine size will not fit in this category, while large SUVs and MPVs will. This also means that SUV now means a car with or without loaded ground clearance and hence there will be no increase in the prices of popular vehicles like Maruti or Hyundai. But SUVs like Tucson, Mahindra Scorpio-N and Tata Safari can see a possible hike in prices.

Also read- Maruti Suzuki Fronx: CNG variant of Maruti Suzuki Fronx launched, from price to features, know what is special in it

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