Mahindra and Mahindra (M&M) has joined the campaign against the proposed additional tax on diesel cars stating that such an action would be a retrograde one for the Indian automobile industry. Drawing attention to the industry slowdown in 2011 from which various automobile manufacturers are still trying to recover, Mr. Pawan Goenka M&M President (Automotive and Farm Equipment Sectors) stated that the imposition of addition tax will significantly affect growth in the auto sector.
Mr. Goenka has urged the government to refrain from implementing the additional tax on diesel cars emphasizing that it could hamper growth in the currently scenario where the car manufacturers expect the car sales to catch up and recover lost grounds. He added that the earlier report by the Kirit Parikh committee according to which diesel cars consume 15 percent of the total diesel consumption in India has been rectified. He quoted Mr. Kirit Parikh who has stated that the report had incorrect data and that such a tax is not justified.
According to Society of Indian Automobile Manufacturers (SIAM), the diesel personal cars consume about 1.03 percent of the total diesel consumption in India instead of 15 percent.
