Why are some hatchbacks marketed as SUV in India ?

In India, the Ministry of Finance has defined criteria of a car to be an SUV (Sports Utility Vehicle), according to which tax rates are decided on a vehicle. The government has defined that if the vehicle meets any of the below criteria, the tax rate may change for the vehicle as the vehicle will fall in a different category.

Criteria for vehicles to fall in the SUV category in India:

• Engine Capacity more than 1500 cc

• Ground Clearance more than 170 mm

• Length of the Vehicle more than 4000 mm

If the vehicle meets any of the above criteria it may fall under a different tax slab applicable for an SUV. This classification is now used by many OEMs to define an SUV in India and hence we can see that many hatchbacks are tagged as SUV in India.