Kolkata: Ford India Friday said its upcoming 'Ecosport' model should not be subjected to 30 percent 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 percent excise imposed on SUVs this budget," Ford India president and MD Joginder Singh 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 percent and not 30 percent.
Any vehicle with over and above the 4-metre length, 1500cc engine along with 170mm ground clearance will attract 30 percent excise tax as proposed in this year's Budget.
Ford India reportedly invested USD 142 million at its Chennai facility to support the 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 percent of the installed capacity of 4.4 lakh units a year and 40 percent of 6.10 lakh units of engines over a period of time, Singh said.
First Published: Friday, April 26, 2013, 18:51