No tax hike on diesel vehicles has companies consider further expansion: Hyundai, Maruti and Mahindra
Friday’s Union Budget saw auto companies wait with bated breath to see what was in store for Diesel vehicles. They probably heaved a sigh of…
Auto companies had put their further investments to the tune of approximately Rs.3000 crores on hold following contemplation that taxes would be revised on diesel vehicle but have now brought such investments and expansion plans to the fore. With the Union Budget sparing Diesel vehicles from any additional taxes and with government subsidies on diesel prices still in place, top auto companies like Mahindra and Mahindra, Hyundai Motors India Limited and Maruti Suzuki will all be surging ahead with their investment and expansion plans.
Hyundai Motors had put Rs.400 crores investment plan to set up a diesel plant on hold last year. They have announced that following the Union Budget they will be taking decisions in coming two weeks about setting up their diesel plant.
SIAM announced that since diesel vehicles have been spared from taxes, auto companies like Maruti Suzuki, Hyundai Motors, Ford India, General Motors and Tata Motors will all be going ahead with their investments in diesel engine plants in India.