Not all big cars are created equal: Half of cars sold in India really not SUVs
SUVs) are wildly popular in India, with the segment now accounting for every second car sold. But going by the official definition of an SUV, such vehicles account for only about a 10th of the total sales volume.
That's because just a third of the 47 models with SUV branding sold in the Indian market have an engine capacity of 1,500 cc and above, a length of 4 metres and more, and ground clearance of 170 mm and higher. Those are the criteria based on which a vehicle is defined as an SUV for the purpose of computing goods and services tax (GST).
Total car sales rose to a record 4.23 million units in the last financial year, up 8.7% from the previous year, with the big-time shift to SUVs — which crossed the 50% market-share mark for the first time in FY24 — having ostensibly underscored the surge.
Going strictly by the GST Council's definition, SUV sales were 445,556 against the 2.13 million attributed to the segment by carmakers. To be sure, that doesn't take away from the shift in customer preference toward the SUV silhouette.
Savings on Tax
A more upright, aggressive stance in SUVs and a higher driving position than in sedans are among the factors that appeal to younger, image-conscious Indian buyers. And then, there's the saving on tax.
India levies GST of 28% on all passenger vehicles, coupled with compensation cess ranging from 1% to 22%. SUVs attract the highest compensation cess of 22%, taking overall levies to 50%.
Industry veterans said SUVs, which were traditionally used for off-roading, have evolved
