19606
Additional tax on diesel vehicle will not help industry: BMW
Posted on 06 Jun 20123,000 Views Comments
The German car maker has experienced a growth of 45 per cent in 2011. A large chunk of sales accounted for by diesel variants which could be affected by a tax hike on diesel vehicles.
Stating that the auto industry is working in a very "fragile economic environment" in India, German luxury car maker BWM today said any move to levy more taxes on diesel vehicles will be counter productive.
The company that had witnessed a sales growth of around 45 per cent in 2011 in India with a total of 9,371 units said it expects growth to moderate to up to 20 per cent.
"We are working in a fragile economic environment now. This is the most difficult year that we are seeing in the last two years. The increases in excise duty, import duty and petrol prices have not helped in improving consumer sentiments at all," BMW Group India President Andreas Schaaf told reporters here.
Asked about the government planning to put additional taxes on diesel vehicles, he said: "Anything that puts additional burden on the customers does not help the environment."
Citing company's sales growth as example, he said, "In the first half of the last year, we grew by 90 per cent, which of course is astronomically high and cannot be sustained, but this year our sales growth is just 10 per cent."
Till May this year the company has sold 3,707 units. The Finance Ministry is examining a proposal to hike excise duty on diesel cars, a move which may discourage consumption of subsidised fuel by personal vehicle owners.
Do you like this story?
- Previous Story
- Next Story
Readers' opinions ( 0 )
Post a Comment
Post a CommentChevrolet cars to cost more from June 2013
General Motors India will hike prices across its...
Hyundai i20 sedan : Official Video
by Team ZigWheels
Rumours has been swirling for long that Hyundai...
Narrowing fuel price gap drives demand for petrol cars
by ET
Petrol cars are back in demand with the price gap...
The Ferrari Way : Special Coverage
Ferrari has been voted as the most powerful brand in the world according to Brand Finance and the...
Chevrolet Enjoy : Special Coverage
Designed to take on everything from the Maruti Suzuki Ertiga to the Toyota Innova the Enjoy is...
