Click it and Unblock the Notifications
India Budget: Carmakers Put Rs 3,000 Cr On Hold
SIAM Director General Vishnu Mathur said, "Many of our members are still unclear whether they should invest on diesel technology or not in India as there is no clarity on how the fuel will be priced in future. This has resulted in more than Rs 3,000 crore of investment being held back."
However, Mathur did not reveal exact details of investments made by each company on diesel projects.
Hyundai Motors had in November, last year announced that it was stalling manufacturing at its 400-cr diesel engine plant which would have an installed capacity of 150,000 units per year. The plant was projected to manufacture 3 diesel engines of different capacities for the domestic market alone.
On the other hand, Maruti Suzuki had clarified that it was difficult for them to invest in the diesel engine plant without a proper idea on the policy on how the diesel fuel will be priced and how diesel vehicles will be taxed.
Maruti Suzuki India Ltd Chairman R C Bhargava said, “In the absence of a clear roadmap on diesel tax, Maruti Suzuki won’t be able reach a conclusion to extend petrol or diesel technology plants.”
The auto industry is now fearing that 'diesel tax' could be levied in the upcoming Budget. Currently, petrol price is deregulated but diesel is given subsidy of which the price is decided by the government.
Continue with Google