Delhi Increases Diesel Car Registration Fee

The hike in diesel car registration fee is not surprising as Delhi chief Minister Sheila Dikshit had in her budget for 2011 had proposed a hike in taxes on diesel cars. She had also said environmental reasons were also considered before this decision was made. More than 30 per cent of cars sold in Delhi are diesel powered. According to available statistics more than 1,200 new cars are registered in the capital city.
The registration tax for diesel cars in Delhi which was earlier pegged at 4 per cent and 7 per cent has now increased to 5 per cent and 8.75 per cent. Luxury cars which were previously attracting a registration fee of 10 [per cent of their total value will now be charged 12.5 per cent as registration fee.
This hike in registration fee for diesel cars might slow down the sales of diesel cars in Delhi. Demand for diesel cars has increased substantially and several carmakers were finding it difficult to adjust to the rapidly changing market scenarios.
Nissan India's Dinesh Jain at a recent launch of the Nissan Sunny in Bangalore had stated that carmaker plan their production schedules years in advance and this sudden increase in demand for diesel cars was something that needs time to adjust.
Although carmakers might not find this increase in registration fee for diesel cars to be little difficult, they would be hoping this will actually move customers to wards petrol powered cars which they are struggling to sell. We had earlier reported that General Motors has completely stopped production of petrol cars due to low demand.


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