[aseem23]

The cost of diesel cars may rise after Union Transport Minister Nitin Gadkari proposed a 10% GST hike today. The minister said the additional 10% will be levied as a pollution tax.

Source: https://www.ndtv.com/india-news/dies...ndtv_topscroll

[Vasuki]

Mr. Nitin Gadkari proposes 10% additional cess for diesel vehicles. He has forwarded the suggestion to the finance ministry.

This is a blow for companies with diesel-packed portfolios like Mahindra.

Looks like intense lobbying would be there from Mahindra & Tata against this and Maruti & Hyundai would welcome it wholeheartedly.

Link

[volkman10]

Minister comes down heavily on diesel vehicles.

Nitin Gadkari urges auto industry to ‘say bye bye to diesel’ or he will tax it so heavily that it will no longer be viable to sell diesel vehicles!

additional 10% GST 'pollution tax' maybe considered on diesel vehicles and generators

It's high time to stop using Diesel or prepare for such substantial taxation that marketing diesel-run vehicles becomes financially unfeasible.

Union Minister Nitin Gadkari plans to request Finance Minister Nirmala Sitharaman to impose an additional 10 percent GST on diesel engines and vehicles.

Following Gadkari's remarks, shares of automakers and oil marketing companies reacted negatively.

Ashok Leyland, Tata Motors and Mahindra & Mahindra, which produce diesel vehicles, fell as much as 2.5 percent.

Shares of oil marketing companies like Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) also fell.

Shares of tractor manufacturing companies such as Swaraj Engines and Escorts Kubota were also down.

Gadkari emphasised the growing focus on biofuels and alternative fuels, noting that this is a top priority as India joined the Global Biofuels Alliance.

He asked the industry why buses and trucks can't run on ethanol all the while complimenting them for increasing focus on alternate fuels and electric vehicles.


Link

[VRSriram]

Originally Posted by volkman10

Minister comes down heavily on diesel cars!

With such unstable policy and industry already invested in BS 6.2 emission norms, this move if implemented will be detrimental for both consumers and industry. Hope there will be rejoinder soon.

[Turbohead]

Aren't today's diesel cars compliant with the latest BS 6.2 emission norms? Why the hate then?

I think they have faced some issues mixing diesel and ethanol. Why else would they want to ban diesels? Nothing else adds up.

[madhukarmohan]

Originally Posted by aseem23

The cost of diesel cars may rise after Union Transport Minister Nitin Gadkari proposed a 10% GST hike today. The minister said the additional 10% will be levied as a pollution tax.[/url]

I hope his intention is just to refrain people from buying diesel cars and to catch the attention of public. Decisions like this without enough resources and other preparedness do not make sense and have lot of repercussions. As per his statement, it will be applicable only for diesel cars. Why a well maintained diesel car whose emission is under control and as per the pollution norms should be phased out?

[antz.bin]

Its already plenty difficult to sell Diesel cars at least in the lower capacity segments with DPF clogging issues galore. The last surviving Diesel hatchback is the Altroz and the cheapest Diesel sedan being sold right now is a Mercedes. CNG has well and truly taken over any demand that diesels had in this segment.

When it comes to the SUVs, especially the larger ones, the demand for Diesel has been stickier. Mr.Gadkari probably wants manufacturers to go the Toyota route and prioritize hybrids over Diesels but then there is no taxation incentive to do so. Tata and Mahindra have never shown any inclination towards going Hybrid and the only way to duck this warning/regulation for them is to go all out on the Pure EV front. Tata seems to have a headstart on this, but Mahindra will have its work cut out.

As an afterthought, if Tata diesel buses and trucks can be CNG powered, why can't Scorpios, XUVs, Safaris and Harriers?

[VRJ]

I do not understand the governments obsession in banning diesel vehicles. What harm did they do? Thanks to BS6, diesel and petrol have almost equal emissions. For example, the new X5 that was launched couple of weeks back, the CO2 emissions for the petrol 40i is 197 gm/km and the diesel 30d is 198 gm/km. Information is as per the brochure. Diesel fuel costs less and thanks to the low end torque that diesel engines offer, the drivability is better (at least for me).

On the other hand, if the government is soo obsessed with reducing their import bills and pollution, why don’t they incentivise hybrids? The hybrid technology is a fantastic stop-gap solution in India. My Innova Hycross (that is E20 compliant) gives 14-18 kmpl in the city and 12-14 on the highways. For a car that size and being a petrol AT, those are phenomenal numbers. Toyota also has the ‘Hybrid Max’ technology in the USA. It offers superior lower end torque compared to normal hybrids. I believe this technology can truly replace diesel engines. With a proper cut in GST, Toyota and other companies would bring in such tech.

Currently the EV’s are super pricey. The Nexon diesel AT is 18L on road in Vizag. The EV max is 21L and the EV doesn’t have any RTO charges. In the 18L for the ICE engine, 2.5L is the RTO charges. That makes the EV 5.5L more pricey than the ICE counterpart. The government is hoping that prices of EV’s would reduce once we all start buying them (economies of scale) and how does the government force everyone to buy EV’s is to increase taxation on ICE cars. As soon as prices come down, the government would restart RTO charges. The Indian automotive enthusiasts are robbed from driving good cars due to the ridiculous taxation on cars and fuel in India. The 3 series is 75L now in India. That’s almost $90,000. You can buy a X5 with that money in the USA. Just not fair

Cheers!

[VRSriram]

Rejoinder issued by NG.

[volkman10]

Industry reacts to the 'diesel ban' statement by the Minister.

Industry experts have pointed out that this move will not only impact commercial vehicles but also passenger vehicles.

Associate Director of Light Vehicle Production :

This announcement is set to deliver another substantial blow to the automotive market, particularly affecting midsize SUVs. Vehicles like the Hyundai Creta, Alcazar, Mahindra Bolero, Mahindra Thar, and XUV 700 heavily rely on diesel engines, iwhich are known for their superior fuel efficiency, especially in last-mile transportation.

In recent years, widespread regulations have already absorbed a significant portion of price increases, and with today's news, it appears that price hikes will persist with further contributions on GST

Link

Following the Minister's statement, Oil companies were trading with losses between 3-4%.

[StarVector]

How about a ban on all privately owned vehicles? Everyone uses only public modes of transport. The government should focus on improving the infrastructure available. I am sure they are aware of the pollution caused and fuel wasted in traffic jams and slow moving traffic. The number of Diesel cars being sold is declining and may become extinct by the turn of the decade. Government should also be held accountable for providing better roads after collecting GST, cess, toll etc

[.sushilkumar]

Somebody should tell the minister that need of the hour is to have a robust public transport system if he is so serious about his Carbon agenda. Such statements will only shows the ministers lack of ground realities. Bio fuels are very much needed for the development of nation.

People are not buying vehicles after paying a GST of 28% + Almost equal cess for fun on their already taxed incomes but for the lack of a good public transport system.He should study good public transport system like available in Singapore.

Metro in big cities is solving problem to a certain extend with big cities but with our type of population, it will always be stretched to limits. Need of the hour is to decongest cities + Reliable fast public transport system within and across cities.

[aseem23]

Originally Posted by madhukarmohan

I hope his intention is just to refrain people from buying diesel cars and to catch the attention of public. Decisions like this without enough resources and other preparedness do not make sense and have lot of repercussions.

I hope so too, I am interpreting the minister's statement in two ways:
1. He is not talking about banning diesel, he is talking about increasing taxes (which doesn't make sense to me). Enthusiasts, people who can afford and diesel lovers will still buy it, though overall volumes will decrease

2. Second-hand market will see further price increases for diesel vehicles, especially BS6 II vehicles. So, diesel vehicles might get some price return in the second-hand market.

Originally Posted by VRJ

I do not understand the governments obsession in banning diesel vehicles. What harm did they do? Thanks to BS6, diesel and petrol have almost equal emissions.

On the other hand, if the government is soo obsessed with reducing their import bills and pollution, why don’t they incentivise hybrids?
Currently the EV’s are super pricey.

You are absolutely spot on. Hybrids are a viable option, there is no effort from the government to provide any incentives. Push from the government will enable OEMs like Jeep, Hyundai, Kia, VW, etc. to bring their hybrid tech to India.

Also, with EVs, the problem also lies with infrastructure. India does not only consist of Metro or Tier 1, Tier 2 cities. I come from a Tier 3 city, and there is no public EV fast charger within 70 km of my vicinity. One of the main reasons why I am not buying EVs.

Also, there is so much confusion about petrol. E10, E12, E20, E27, Fuel pump issues, older petrol vehicles not supporting E20, etc etc

Nevertheless, I think this was an illogical comment to make from a senior minister. When data points are missing or taken from WhatsApp University, then such comments can be expected.

[nordmariner]

There is an urgent need to clarify media reports suggesting an additional 10% GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free. - Nitin Gadkari

https://twitter.com/nitin_gadkari/st...01884324860043

[anjan_c2007]

Originally Posted by SR-71

Probably the final nail in the

Yes that's among the many nails and also a heavy duty nail this time around if the 10% GST levy is imposed and the now proposal becomes a policy.

The news reads:-

Union Minister Nitin Gadkari said on Tuesday that he plans to propose imposing an additional 10 per cent tax on diesel engine vehicles.

Link:-
'Plan to impose 10% additional tax on diesel-engine vehicles': Nitin Gadkari
http://dhunt.in/PebVT?s=a&uu=0x4a09defdfbda8a93&ss=pd
Source : "Business Today" via Dailyhunt

The full news is not yet out and its Mr Gadkari's proposal, which has to be accepted by the GST Council and finally by the Finance Minister. He has aired many other views at the rate of ONE every few days since the past NINE years and not all have become government policies. Like his proposal in the Motor Scrapping Policy unveiled by the Prime Minister just some two years ago. Therein a GST rebate of 5% on the new purchase in lieu of the scrapped vehicle was proposed by Mr Gadkari and appears in the policy's White paper. But no such GST REBATE has come by till today, despite two annual budget presentations ever since. The old vehicle owners have thus been left in the lurch. But diesel has been painted a villain almost worldwide and sympathisers of diesel fuel are too few. So this time the diesel GST proposal has to endure the acid test.

Let's hope some pragmatism is seen here with such an irrational 10% GST hike, as it will deal a cruel blow to the transport vehicle sector, which mainly relies on diesel to propel their movers. CNG's availability nationwide is questionable, while we all know the present minus points that deter EV buyers on this present day. Petrol as a fuel is still not viable for many mid-sized and huge commercial vehicles.

Coming to private car buyers like us, many will switch over to petrol vehicles. The OE manufacturers who do not have petrol engines especially for their SUV portfolio will have to go for petrol/ CNG alternatives. And the full sized SUV (in India) sales could take a hit as petrol engines could deliver single figure kmpl figures, which even many well to do people too detest.

Lastly, though the Hon'ble Minister uses EV's, petrol and Hydrogen powered vehicles as personal transport, its not very long ago that he personally owned a fleet of BMW diesel SUV's. And even today his police escort cars are Boleros and XUV 100's.