Diesel cars in India to shape the future of Indian auto industry
Putting a seal on diesel technology as the future of the industry, various delegates and organization besides heads of various car brands have unanimously acclaimed diesel to be better in terms of efficiency and mileage delivery and even cleaner than other fuels. Industry experts believe that high mileage diesel cars such as Renault Duster, Chevrolet Beat Diesel, Tata Indigo CS, Nissan Evalia and other cars have triggered this change in perception and that is why today people have started perceiving diesel as a cleaner, safer and better fuel than petrol. These and other views were expressed at conference on ‘Diesel for Future: Economy & Environment’ organized by Society of Indian Automobile Manufacturers (SIAM) in New Delhi.
However, where diesel technology has been accepted to drive the industry in the future, there were certain taxes lurking that could play a spoilsport. At the conference, Mr Kirit Parikh who heads the Integrated Research and Action for Development suggested to put an addition Rs 50k tax on diesel run SUVs as well as annually collected road tax. In addition to this, he has also advocated deregulating diesel prices. Furthermore, he suggested a cap on diesel subsidy. He reportedly said in a statement that making diesel prices governed by the market will have long term benefit after the initial rise in prices. Mr Parikh has submitted these proposals to the government and these are said to be in serious consideration by the government in order to cut the rising diesel subsidy burden on the exchequer.
It is believed that if the fresh proposals come into effect, it will impact the fate of presently available entry level SUVs as well as mid segment SUVs and it could also desist car makers making more plans for India. The nearest launch of new SUVs includes Ford Ecosport
and Maruti XA Alpha
. If the suggestions are adopted as is, there will be an increase in the price of diesel powered SUVs as well as all cars from Rs 10k to Rs50k.