The 2012-13 Budget release is followed by rise in prices of vehicles, which is to be initiated by majority of automakers in India resulted from the hike in excise and custom duties.
A major relief was brought about by the untouched tax rates levied on diesel vehicles stimulating the automobile firms to outstretch their diesel powered vehicles production.
The Society of India Automobile Manufacturers (SIAM) had expressed the hesitation of the auto companies over the diesel price structure and tax structure on diesel run vehicles that would pertain after budget release due to which they revoked their investment of over Rs. 3000 crore in India prior to its release.
Mr. Pawan Goenka, President (Automotive and Farm Equipment Sectors) of Mahindra & Mahindra said, "There has been no mention of an additional tax on diesel vehicles or on the existing differential pricing of diesel in the Budget...I would therefore assume that diesel vehicles will not be treated any differently."
A representative from Hyundai Motor India commented that the company will be proceeding towards their decision to expand their diesel engine capacity after deliberating the merits and demerits.
Even Maruti Suzuki said that the automaker will be moving ahead cautiously after seeking clarity on this issue but the spared diesel prices at the budget will be advantageous for those with established diesel engine capacities.
