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The Automobile Thread


Chaztin
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The proposal: Now though, petroleum minister Jaipal Reddy has made a high voltage announcement that has all the potential to drive the Indian car industry into a prolonged slowdown. Mr Reddy’s ministry has recommended that the Finance Ministry hike the tax on small diesel cars by INR 1.7 lakhs and that on larger diesel cars and SUVs by INR 2.55 lakhs. If implemented, this would result in the price of diesel cars moving up very sharply. Already diesel cars cost anywhere between INR 80,000 to over 1 lakh more than equivalent petrol cars.

The proposed tax hike would widen this gap to unforeseen levels, simply knocking the wind off diesel car sales. More importantly, the tax hike would be more of a punishment for a fuel that is now cleaner than petrol while being inherently more fuel efficient. So, the petroleum ministry’s recommendation seems more like a regressive measure than a genuine attempt by the Indian government to recoup losses that the government makes due to subsidizing diesel.’The petroleum ministry’s contention is that the subsidies on diesel are aimed at the agriculture and transport sector, but instead are being used up by car buyers, which is clearly not intended.

The petroleum ministry attributes 15-20% of the total diesel consumption to passenger cars and SUVs, which is about INR 7,000-8,000 crores in diesel subsidy being used up by diesel engined cars. Therefore, the massive tax hike on diesel engined cars is designed to recoup most of the subsidy burden. While the Indian government might not go ahead with such a big hike considering the wide ramifications it could have on car sales given the weak footing that the Indian economy is already on, the buzz in government circles hints at a moderate price hike in the near future. Watch this space.

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Took the Cruze out for 1st heavy drizzle. Love the complete automatic environment of the car, Automatic wipers work like a boss, doors unlock automatically, auto dimming rear view mirros, auto acceleration via cruise control and the auto gear. Feels as if you are playing FM4 with all assists on.

 

 

 

congo.

 

we call it rocket car on diesel. :)

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renault :scarerun: :scarerun:

 

Also i see bali bhai watching this thread, when is ur evouqe coming :naughty: ?

 

 

the thing is after I posted my LED TV on "what you bought" thread I have decided never to show off..

 

cuz that TV stopped working after a month.. so I am sorry but I wont show off now :P

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