1 per cent infrastructure cess on petrol, CNG and LPG cars, 2.5 per cent on small diesel cars and 4 per cent on bigger diesel cars and SUVs announced
Small petrol cars saved Maruti Suzuki India the blushes in December as the domestic car market continued to be in deep trouble.
For July, Maruti saw compact segment decline by almost 12 percent to 13,882 units (15,759 units) whereas the UV segment fell 37.5 percent to 4,562 units (7,294 units).
For every 2.3 persons living in the city, Delhi has one vehicle. It is no wonder then that environmentalists blame the capital's air pollution on vehicular pollution - more specifically, on diesel cars.
Diesel cars have stopped selling and automobile companies are nursing huge inventories of both diesel and petrol cars.
The car major said imposing additional tax on diesel vehicles will create an uncertainty on future investments in the country.
The government is now considering a new plan to raise diesel prices only for cars and SUVs. There is a question-mark over how this can be implemented.
To discourage the consumption in subsidised diesel, the Finance Ministry is looking to raise excise duty. According to Oil Ministry estimates, 15 percent of diesel consumption is accounted for by personal cars and SUVs.
March sales for Maruti are the highest-ever in a single month in the company's history, but worries remain for Maruti despite the good show.
Mercedes-Benz today voiced its opposition to any move to impose higher excise duty on diesel cars in the ensuing Budget, saying it would be counter-productive to the industry's growth.
The remedy for the increasing dieselisation of cars is not a higher tax on diesel cars. We should raise diesel prices and lower petrol.