Sub Four meter car advantages

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Sub 4 meter vehicles get excise duty benefits from Govt. of India.

The excise duty on longer than 4-metre cars is 24% (27% in case they have a bigger engine and 30% in case they come under the SUV nomenclature). Sub 4-metre cars (meeting the engine criteria as well) are slapped with only 12% excise duty, that is exactly half and can translate to more than Rs. 50,000/- worth of savings (depending on the price bracket of course). You can also check out this link:


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Govt policy aims at reducing the tax burden on ordinary citizens of our country.

The sub four meter clause helps to differenciate what vehicles would appeal to the masses rather than to the affluent.

This guideline then begins taxing these specific vehicles accordingly .

Now when a vehicle is cheap, automatically the cost of insuring it would also be cheaper and impending taxes which a generally a said percentage would also add up to be low.

If you talk specifically about insurance , it is generally insurance company dependent , they basically calculate how many vehicles of a said make and brand made claims in the preceding years , they then compute a percentage ration and use it as a multiplying factor to arrive at the final insurance amount , this is the general reason why you get different insurance premiums quotes for the same vehicle.

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