Ford EcoSport price will not be affected: Budget 2013

Budget 2013 states, the increased excise duty of 30% will be levied on vehicles which have a ground clearance of over 170mm, length of over 4000mm, and engine capacity of over 1500cc This in itself is a strange way to decide which is an SUV, because according to this, Maruti SX4, and Hyundai Accent are SUV’s and Mahindra Quanto is not.

India is awaiting the launch of Ford EcoSport. Though Ford India has not said anything officially on the price of EcoSport, reports suggested that the price of EcoSport could start from INR 5.99 lakhs. The EcoSport SUV is 4228mm in length and has a ground clearance of 200mm, but thanks to its engine, which does not exceed the 1500 cc capacity, it will be saved from getting taxed 30% excise duty.

Auto manufacturers are already selling their products on least possible margins, and such increase in duties will only see manufacturers passing on the burden to the consumers. Joginder Singh, president and managing director, Ford India, expressed his displeasure over Budget 2013 increasing excise duty.

One thing is for certain that the budget 2013 will affect prices of best selling SUVs in India to such an extent that consumers could see the prices of their favorite cars like XUV500, Innova and Scorpio shoot up by INR 60k.

UPDATE: The article has been updated. Thanks to Arun and Sunil.