The Indian automotive industry fears that the federal government may impose higher taxes on diesel vehicles in the upcoming budget, due out later this month.
The Society of Indian Automobile Manufacturers (SIAM) has been expressing apprehension over speculations that in the upcoming budget, higher taxes could be imposed on diesel passenger vehicles as the subsidized fuel has been benefitting affluent drivers.
Domestic and foreign car manufacturers established in India, such as Ford India and Renault India, also have supported the stand taken by SIAM on the diesel taxation issue.
Media reports quoted Ford India President and MD Michael Boneham as saying that the automobile industry is the one that is investing heavily in the country; therefore the higher taxes are going to affect the industry negatively.
Renault India Managing Director Marc Nassif was quoted as saying that a significant part of the product portfolio consists of diesel cars and if the government is to change their policy and increase the excise or levy any other tax, then the subsequent demand may be less than what has been projected.
by TC Malhotra on March 7, 2012
Style: Industry News Category: Automotive, Manufacturing, Metal Fabricated Parts, Public Policy