In India, the government is heavily promoting cars and vehicles running on electric, hydrogen and ethanol. Although electric vehicles are running in the country first and now cars running on hydrogen and ethanol fuel have also come in the Indian market.
In such a situation, to increase the use of cars running on hydrogen and ethanol fuel in the country as soon as possible, Union Road Transport and Highways Minister Nitin Gadkari has demanded a big action from Finance Minister Nirmala Sitharaman. Gadkari said that I have requested Finance Minister Nirmala Sitharaman to impose 10 percent additional GST on diesel engine vehicles to curb sales.
As soon as Gadkari’s statement came out, the shares of automobile companies took a dive in the stock market. In such a situation, if the Finance Ministry and the Union Transport Minister agree to this idea, then diesel vehicles will become very expensive in the country and the possibility is also gaining strength that the sale of diesel vehicles may be banned in the country.
While attending the 63rd Society of Indian Automobile Manufacturers annual conference in New Delhi on Tuesday, Gadkari said, I am requesting the Finance Minister to impose additional 10 percent GST on diesel engines/vehicles, to phase out diesel vehicles. This is the only way.
Gadkari also said that I have already drafted a letter and I am meeting the Finance Minister this evening. I will increase taxes to such an extent that it will become difficult to sell diesel vehicles.
The minister has warned the automobile companies that the country’s automobile companies should immediately focus on reducing the production of diesel vehicles, otherwise the government will increase the tax on it so much that it will become difficult for the companies to sell diesel vehicles. The minister said that companies should reduce the production of diesel vehicles otherwise I will increase the tax.
Emphasizing on the increasing focus on biofuels and alternative fuels, Gadkari said that India will now have to give top priority to biofuels and alternative fuels. The country has joined the global biofuels alliance during the G-20 summit. He said that India imports 89 percent of crude oil, which is a significant challenge. Therefore, PM Modi has given top priority to alternative and biofuels.
Nitin Gadkari also asked the auto industry why buses and trucks cannot run on ethanol? He also lauded the industry for increasing its focus on alternative fuels and EVs.
After this statement by Gadkari, there was a decline in the shares of automobile companies listed in the stock market on Tuesday. During trading, Tata Motors shares were trading 2.62 percent down at Rs 618.05 on BSE.
Shares of M&M were trading at Rs 1,536.55, down 2.88 per cent. At the same time, shares of Swaraj Engines and Ashok Leyland fell by up to 3 percent. Ashok Leyland is trading at Rs 178.30 and Swaraj Engines at Rs 2071.45.
