SIAM and General Motors suggest diesel price hike over the proposed hike in diesel vehicle taxes
Subscribe to NewsletterPlease fill your name and email ID to get our daily auto news mailer.
General Motors India and the auto industry regulatory body, Society of Indian Automobile Manufacturers (SIAM) have condemned the proposal of imposition of vehicle taxes on diesel vehicles calling it a retrograding step and have rather suggested the Indian government to hike the price diesel fuel by Re.1 in a bid to the offset the unstable market demand.
Recently, the petrol fuel price witnessed a shoot up to the extent of Rs.78 per litre while the prices of diesel fuel remained unchanged at Rs. 40 to Rs. 45 per litre. Owing to this, the auto market saw a sudden shift in the buyers demand in favour of diesel powered vehicles leading to drastic cut in production and sale of petrol vehicles. This deviation in fuel prices led to a catapult in diesel vehicle demand by 85 percent with dip in petrol vehicle demand to a meagre 15 percent.
Mr. P. Balendran, Vice-President, Corporate Affairs, General Motors India, was quoted as saying, "We as well as Society of Indian Automobile Manufacturers (SIAM) has recommended, a hike in diesel prices by Rs 1 per litre as it would help government earn Rs 6,000 crore revenue." He further said that the government’s revenue earnings from the Re.1 diesel price hike will be over three fold greater than the earnings that would generate from imposition of 5 pc vehicle tax on diesel cars.
The automaker has thereby recommended on behalf of the auto industry to reduce the petrol price and hike the price of diesel fuel in smaller proportion to ensure equilibrium in the market demand. GM India is considering the price stabilization as a right approach to boost up the sluggish market scenario.
- Renault Duster facelift expected to be unveiled at Auto Expo 2014
- Audi Q1 set to be showcased in 2016
- Next-generation Ford Mustang to be showcased on 5th December
- Pricing of Ford EcoSport main reason behind its success
- Bajaj RE60 likely to be launched in India soon
- Cars expected to make a mark in 2014
- Hero MotoCorp enters a joint venture with Magneti Marelli
- Ford Midnight Surprise 2013 edition to take place on 5th December
29 November 2013, 12:06 IST by CarTrade Editorial Team
Honda Cars India Limited, the domestic division of Japanese car maker, recently showcased the 4th Generation model of City in the country. Sources close to the development process have revealed...
Under: Honda City
02 December 2013, 12:21 IST by CarTrade Editorial Team
As 2013 is coming to an end, many car makers would want to forget the dismal performance of this year in terms of sales and profit levels. In the passenger car segment, many companies failed to...
02 December 2013, 12:45 IST by CarTrade Editorial Team
In a shocking news that sent ripples across the American film fraternity, it was leant that Paul Walker has passed way in a car accident that occurred in Southern California. Reportedly, the actor...
30 November 2013, 00:57 IST by CarTrade Editorial Team
Indian car market is loaded with models that are affordability and fuel-efficient. All players in the market know the role played by price and mileage in influencing the decision of a car buyer....