While it is true that GC is a critical factor, I would put it in a different way: It should not be the criteria for selecting a car, but yes, for rejecting a car. In India, you do need a high GC: period.
Yes, higher GC means higher centre of gravity and therefore higher chances of toppling over. But the case of toppling would come if you are driving on a "Maut ka Kuan" or something. Under normal conditions, if you drive sensibly, you would not topple.
Lower GC is not bad only in case of poorly designed bumpers, but also on bad roads. My SX4 for e.g. has hit just one bumper thus far, and I have driven through every hook and corner of Delhi NCR. There are few bumpers where I have seen bumpers that even big cars like civic getting hit every time. One literally has to bring the car to zero and then slowly crawl over them to avoid scratching the underbody. I on the other hand, cross it safely at 10 - 15 kms on second or at times even on third gear at 20+, still don't hit the bumper (though it is the only bumper I have hit, but that was at 30+). So high GC helps.
However, as I said earlier do not buy a car that has anything less than 165. if the car is heavy then even 165 can be less. But it should not be the sole criteria to chose a car.
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