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Ford India today said its upcoming ’Ecosport’ model should not be subjected to 30 per cent excise tax, saying the SUV’s specifications do not qualify it to be taxed at the higher rate.
“EcoSport is a sub-four metres urban SUV in length and hence as per our interpretation there should not be additional three per cent excise imposed on SUVs this budget,” Joginder Singh, President and MD, Ford India said.
“We are seeking more clarification on this,” he said.
A Ford India official said according to the company’s interpretation the excise should be 27 per cent and not 30 per cent.
Any vehicle with over and above the 4-metre length, 1,500-cc engine along with 170 mm ground clearance will attract 30 per cent excise tax as proposed in this year’s Budget.
Ford India reportedly invested $142 million at its Chennai facility to support manufacturing of EcoSport.
Singh declined to comment on the proposed price of the SUV and the date of its launch.
He said the vehicle would be exported to more countries than Figo and might even be shipped to Europe.
With the second factory proposed to be in place in mid-2014, the total export of cars by Ford will be 25 per cent of the installed capacity of 4.4 lakh units a year and 40 per cent of 6.10 lakh units of engines over a period of time, Singh said.
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