Diesel Vehicle Updates
Addressing the SIAM’s 63rd Annual Convention, Mr. Nitin Gadkari, the Union Minister of Road, Transport and Highways, has called upon the Automobile Industry to cease the production and sale of Diesel Cars and SUVs, citing them as Environmentally detrimental.
Mr. Gadkari has proposed the introduction of an Additional 10 percent tax on Diesel Vehicles, characterizing it as a “Pollution Tax.” He aims to discourage the sale of Diesel Vehicles in the Country. He emphasized on the importance of our Domestic Industries in making substantial strides towards reducing Fossil Fuel imports.
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Due to the stricter BS6 Phase 2 Emissions Standards, many Diesel Vehicles have already been discontinued. The remaining Diesel Vehicles have witnessed a considerable Price increase due to the costly Technology required to meet these Emissions standards. Data from recent research, reveals a decline in the market share of Diesel Vehicles, with Petrol, CNG and Electric vehicles gaining popularity. In 2019, Diesel Vehicles accounted for almost 32.78 percent of the market share, whereas the current figure stands at 17.74 percent.
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It’s worth noting that this additional tax proposal is still just a suggestion from the minister. Gadkari has previously floated various ideas, not all of which have been implemented. He later clarified via a tweet that “there is no such proposal currently under active consideration by the Government.”
