Latest Car News in India

Diesel cars might become expensive from Rs 1.5 lakh up to Rs 2.55 lakh

The government seems to have decided to give a major jolt to the Indian car industry. Already reeling under immense setback to sales due to the petrol price rise, the government is thinking of imposing special tax on diesel cars. It is expected that small diesel cars such as Maruti Swift or Nissan Micra will be dearer by Rs 1.70 lakh while Maruti Swift Dzire, Renault Fluence and the like sedans and small and medium SUVs such as Premier Rio and Tata Safari or the Mahindra XUV 500 will be costlier by Rs 2.55 lakh. With the special tax, the oil ministry plans to curb the increasing number of diesel cars in India and the resulting increase in consumption of diesel by cars.

As per the sources information, the diesel cars are more economical to run and offer more mileage than petrol and thus more and more people started opting for diesel car rather than petrol car while the diesel price could not be raised following its high consumption in agriculture and transport. Also, diesel price could not be raised following the political compulsions. Now, the government is left with no other option than to tax the diesel cars in India. Though the matter is still under consideration, it is obvious that this move will get through as despite of seeking alternatives of not increasing tax on diesel cars, the car companies could not come up with any viable option suggestion.

If the government imposes tax on diesel cars, expect an increase ranging from Rs 1.5 lakh to Rs 2.55 lakh on diesel cars and the already high priced diesel cars will get costlier. This is expected to have adverse effect on the car sales in India. The petrol prices are already high, leading to few people buying them, interest rates are high so increasing the loan amount by Rs 1 lakh to Rs 2 lakh means an extra burden on EMI to the tune of around Rs 3000 to Rs 6000. Thus, the last option that will be available to the car buyer will be – not to buy a car instead.