Mahindra & Mahindra, one of the largest auto manufacturers in the country, has opposed the proposal of imposition of additional taxes on diesel powered vehicles implying that such an implementation would further hinder the growth of the industry after facing a tough sales and production issues in the year 2011.
The proposal was put forth on the basis that the subsidized diesel fuel is more utilized for powering luxury vehicles and extra tax ranging up to Rs. 80000 should be imposed on diesel cars. But the company has affirmed that the usage of diesel fuel in luxury vehicles for personal use is limited to 2 percent of total diesel consumption in the country due to which the erroneous data mentioned in the report generated by expert committee was rectified.
Mr. Pawan Goenka, President- Automotive and Farm Equipment Sectors, Mahindra & Mahindra, commented that, "A tax on diesel vehicles will further impede growth of the industry which has had a difficult year in 2011". He further added, "In my opinion to consider an additional tax on diesel vehicles is a retrograde step..."
While countering the talks of benefit derived from use economical diesel fuel to Mahindra & Mahindra as the reason for such revolt, Mr. Goenka said, "The fact is that even within the very small percentage of use of diesel fuel for personal vehicle, a small fraction, less than 10 per cent is used for luxury vehicles. Thus, the use of diesel fuel for luxury personal vehicles is less than 0.2 per cent."
Even the study conducted by the Society of Indian Automobile Manufacturers (SIAM) states that across various sectors in the year 2010-11, diesel personal cars consumed accounted for 1.03 percent.
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