New Delhi: Mahindra & Mahindra has slashed the price of XUV 500, one of the best selling Sports Utility Vehicle (SUV). In order to provide a more economical version, the company has reduced the ground clearance to avail lower excise duty.

The ground clearance of the vehicle has been reduced to 160 mm from 200 mm, as a result of which the company will get a 3 percent saving on excise duty. The price of the XUV with new specifications will go down by Rs 27,000-30,000.

The XUV 500 will now be fitted with a stone guard, a protective panel under the body, which also serves the purpose of lower ground clearance.

M&M’s range of SUVs was affected by the new ground clearance stipulation and prices were hiked in March after Union Finance Minister had announced a hike in excise duty on SUVs from 27 percent to 30 percent in the General Budget for 2013-14.  

The company might change specifications of some more SUVs in order to ward off the impact of increased excise duty. Other than the XUV500, Scorpio and Bolero are two Mahindra vehicles that became bound to pay higher duty after the budget.


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