Motor vehicles tax exempted for Isuzu in Andhra Pradesh

The Government of Andhra Pradesh has announced that buyers of Isuzu vehicles will be exempted from payment of motor vehicle tax in the state. The move is the first of its kind in the country and is considered to be a promotional one. Isuzu Motors’ sole manufacturing plant in the country is located at Sri city in Andhra Pradesh, hence production of all Isuzu vehicles in the country happens at this plant, which currently has a capacity of handling 50,000 units and can be scaled up to 1,20,000 units in the future.

Sri City is a developing, SEZ driven city in Andhra Pradesh which looks like it posesses all the required qualities to be a good place for a manufacturing plant to be set up, especially considering that the Chennai Port, which is very well known to be the port from which most of India’s automobile exports happen, is just 70 Kilometres away from Sri city. This move to exempt all Isuzu vehicles from taxes in the state might be a move to attract more manufacturers to set up shop in the city.


Isuzu Manufacuring Unit at Sri City, Andhra Pradesh

The exemption from lifetime taxes on Isuzu Vehicles though, is for a limited period only and buyers will be able to avail this from the three Isuzu dealerships in Andhra Pradesh (Tirupati, Vishakhapatnam and Rajahmundry) from November 18th, 2016 till 31st March, 2021 which though limited, is a long time indeed.

The Government notification mentioned that the buyers of the Isuzu D-MAX S-cab and regular cab commercial pick-up trucks will be exempt from the quarterly commercial taxes currently applicable on them, and the D-MAX V-Cross which can be registered as a private vehicle will be exempt from the lifetime tax applicable on all private vehicles.

Isuzu had announced that it would launch its SUV, the Isuzu MU-X in 2016 and earlier this month the Isuzu MU-X was spotted testing in India for the first time. When launched, it would be produced at the factory in Sri City, meaning this tax exemption would be applicable on the new SUV too, which in turn would reduce prices drastically when compared to its competition. The Isuzu MU-X might just be priced lower than the recently launched Toyota Fortuner and the Ford Endeavor. This tax exemption would then definitely work out for the good of the Japanese Automotive giant.

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Also see: Electric Vehicles to be Tax Free in Maharashtra