Tuesday, November 27, 2012
By Manoj Kumawat
Diesel cars could be costlier by Rs 10k to Rs 50k, annual road tax proposed
It seems that something is wrong with the auto industry which is why however best it tries to come out of the slump, some powers want to pull it back into depression. Recently, the launch of Maruti Alto 800 and other cars such as Mahindra Quanto have set afire sales of cars in India but a recent suggestions by Kirit Parikh, who heads the Integrated Research and Action for Development seems to dwindle its hopes of a comeback. Parikh is investigating means to stop the growing fuel subsidy on the government and he has said in a statement advocated annual road tax and Rs 50,000 additional tax on diesel driven sports utility cars in India.
|See More Mahindra Quanto Photos||Get Mahindra Quanto Price|
These measures though seem to bring some relief on the government but there is a greater possibility that it will weaken the industry. The industry too has discredited the suggestions terming these as having no use. Another suggestion that Parikh made is to deregulate the diesel prices and put a cap to diesel subsidy to Rs 9 per litre. Experts believe that if these suggestions are adopted, there will be massacre of SUVs in the country.
|See More Renault Duster Photos||Get Renault Duster Price|
Notably, in the recent months, there have been a lot of diesel SUV offerings that have come including Renault Duster, Mahindra Qunato, Tata Safari Storme and others while others are in the offing including Maruti XA Alpha and the most waited Ford Ecosport. If the price of diesel SUVs get a hike of Rs 50k there will be a negative impact on the sales and the low priced SUVs such as Quanto and Duster besides the already existing SUVs will suffer the most. Though these are proposals only by Parikh committee but these statements could have negative repercussions on the car market which is still to recover decently after the bad phase since last two years.