The oil ministry's proposal to impose a staggering Rs.1.55 lakhs as addition excise duty on diesel cars has started ringing alarm bells among carmakers and car buyers alike. It is not only the existing cars that will face the heat but also cars that are still under development.
One such victim of the proposed excise duty on diesel cars will be the diesel variant of the Tata Nano. We have been writing about the Tata Nano Diesel since close to a year after reports emerged about Bosch working an a diesel power plant for Tata Motors. There were high expectations about the Tata Nano Diesel at least being unveiled during this year's Delhi Auto Expo in January.
While auto enthusiasts could only make do with seeing the Nano's CNG variant, hard core diesel car fans were disappointed. The Tata Nano Diesel can be named as the most awaited car among cars that have not been officially confirmed. The prospect of paying about Rs.3 lakhs for a diesel Nano is more appealing to car buyers than paying Rs.2 lakhs for a petrol hatchback.
Alas the dream of owning a low cost diesel Nano can only remain a dream considering the huge amount of taxes the government is planning to impose on diesel cars. The price of a diesel Tata Nano could only be around Rs.3 lakhs without the tax.
Considering the Rs.1.55 lakh excise duty on small diesel cars. The diesel Nano's price would be At least Rs.4.5 lakhs. Such a price will not be attractive as people would hesitate to pay such kind of money to an entry level small car. Tata Motors will most likely not launch the Tata Nano diesel if the new diesel car tax becomes effective. The Tata Nano diesel might quite possibly end up just a dream for many car lovers.