Diesel cars to be Taxed ?

Discussion in 'Indian Automotive Scene' started by Dhillon, Dec 20, 2011.

  1. Dhillon

    Dhillon Administrator Staff Member

    Apr 21, 2011
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    The government's stand on diesel vehicles, expected to be announced in the forthcoming budget, seems to be one of the most eagerly-awaited decisions by Indian automobile companies. While diesel-focused auto makers such as Mahindra and Mahindra are wary of an additional tax for diesel vehicles, India's largest car maker Maruti Suzuki, whose forte is small petrol cars, is looking forward to the budget to firm up its diesel strategy.

    The government's partial deregulation of fuel prices - freeing up petrol prices while retaining its hold on diesel prices - has skewed sales hugely in favour of diesel cars.

    Diesel cars and utility vehicles may see an additional tax in the forthcoming budget since freeing up of diesel prices, which involves burdening public and goods transport segments (bus and truck operators), is a complicated affair.

    "Don't expect major announcements that will be a stimuli for the industry," said Pawan Goenka, president, auto and farm equipment sector, Mahindra & Mahindra. "The biggest fear is diesel vehicle tax."

    Meanwhile, Maruti Suzuki, battered by an erosion of sales following the freeing up of petrol prices, is looking forward to the budget before finalizing future investments in diesel technology and power train facility.

    "Ever since the petrol deregulation, the difference between petrol and diesel grew from Rs 10 to Rs 23," said Shashank Srivastava, chief general manager, Maruti Suzuki. "In the small-car segment where only petrol version is available, sales have been impacted. The petrol segment declined by 16.5% while diesel segment grew by 25%."

    "For models which have both fuel options, diesel now accounts for 85% of the sales," he said.

    "Among cars that have both fuel variants, share of diesel variants grew from 35% to 80% while petrol variants shrunk to 20%," said P Balendran, vice-president, General Motors India.

    Hyundai, another major player in the petrol segment, saw sales drop by 20% in November.
  2. Codename.47

    Codename.47 Guest

    bas kitho reh na jaave paise banon da tareeka
  3. Dhhawal

    Dhhawal New Member

    Apr 26, 2011
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    the government earns so much from the sale of petrol as well as from vehicular taxes and road taxes...yet, they feel the need to tax us even more, i am not against taxation itself, but if people are paying for something, they should get the services as well, they have conveniently enacted a road tax(right now its ten percent which does not include VAT), so basically you're shelling out 22% extra as taxes, 30% of the roads in metropolitan cities like bombay and delhi are in deplorable conditions, moreover, roadspace is increasing at a paltry rate of .2 percent, and when your suspension collapses due to the bad roads..you pay VAT again when you buy new struts or/and shock absorbers, so basically..you're flushing your money down the drain..and for good measure, you will do it over and over again
    Last edited: Dec 20, 2011

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