The automobile industry is livid with the Petroleum Ministry and its recent proposal. The industry is levied with a surcharge, an additional excise of 1.70-2.55 lakh on diesel cars and SUVs. With the diesel and petrol prices on the climb, this sure is going to add insult to injury. There has been uproar in the Indian community due to the sudden spike in mainly petrol prices, and following up such a drastic price increase is the excise additional that has been imposed by the Petroleum Ministry. The consensus of such a proposal was reached once the ministry had consulted and agreed with the Department of Heavy Industry.
Heads of the big leagues from the car industry has strongly resented such a proposition and has come out publicly to protest against it. The senior officials from the likes of General Motors, Toyota Kirloskar and Audi India have come together to oppose the move against Petroleum Ministry.
SugatoSen, a Senior Director from SIAM declared that this is outrageous and doesn’t follow protocol. The procedure for such an action should be such that the Heavy Industries, the Public Enterprises and the nodal ministry should be consulted. And only after there has been a consensus for any such proposed agreement can such any excise duty increase be brought into action.
The Ministry of Heavy Industries have come ahead to show their support for the car industry and would soon write to the Finance Ministry to show their concerns towards such an excise.
General Motors India Vice President,P.Balendran, stated that this kind of a levying of addition excise is a dismal and regressive step which will account for even slower and sluggish industry growth rates. This adds to the already exorbitant interest rates levied onto the car industry. This incident, coupled with inflation and high fuel prices doesn’t bode well for the car industry here in Indian.