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Auto Makers Worried About Diesel Units
Here comes the outcry from the auto makers who express their deep concern on levies on diesel vehicles. The fear comes in the wake of a recommendation of differential taxation on diesel vehicles by the Kirit Parikh Committee. The camps of global players are more gloomy as they are the ones who have already shelled out huge investments for the diesel products in India.
They feel that any rise in levy of this nature will sure to deduce the demand and may force reconsideration of further investments. For instance, Ford India has already invested 0 million to yield 2.5 lakh annual units of diesel engines from its facility. This facility is designed to deliver engines for the domestic and the global markets in another four months duration. The company"s MD for India said the induction of differential taxation will definitely hit the prospects of the company"s growth and future investments.
The remark from the Deputy MD of Toyota India directed towards the speculation over investment on diesel products. The company is currently getting good feedback for its Etios and proposals are there to introduce the diesel version soon. Everything depends on the information on this taxation, he added. According to the Kirti Parikh committee there shall be additional excise duty amounting to Rs 80, 000 for diesel cars in a bid to neutralize the fuel pricing. This move got deep outcry from the auto segment even a year ago.
The protest tone is higher now as more popular companies have established many diesel versions from their platform. The DMD of Toyota clarified that already the auto makers are suffering a lot out of rise in input costs and the rise of excise duty could not help the companies grow. The voice from the COO of M&M has been on the whammy nature of the taxation as the company is delivering vehicles which attract additional surcharges of Rs15000, since the engines exceed the 2 litre capacity.
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