Mr. Praful Patel, Heavy Industries Minister in India addressed an annual conference of Society of Indian Automobile Manufacturers this week. He has supported the diesel subsidy, as well as, the need for promoting diesel vehicles. Mr. Montek Singh Ahluwalia, Planning Commission’s Deputy Chairman however was keen to support gradual de regulation of diesel.
Last year saw petrol prices go free from government control. Presently, petrol is price hovers around Rs. 64 per liter, as compared to diesel which is available for a government supported price of only Rs. 41. Auto companies in India today boast of a much larger diesel car portfolio than they did two years ago. Just yesterday, Toyota launched the Etios for a price of Rs 6.44 lakhs and Liva diesel for a price of Rs 5.44 lakhs.
Of late, the Indian car market is showing a clear preference for diesel run vehicles. Demand for such vehicles is on the rise and many auto companies have recorded rising sales of their diesel run vehicles, and to tap into this buyer sentiment, have been launching diesel variants. Diesel run cars would benefit the country due to their lower emission of CO2 gases. The decision to levy additional taxes on diesel cars and SUVs would be detrimental to diesel technology in India.