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India to consider additional 10% tax on diesel engine vehicles

Reuters · 1y ago

India to consider additional 10% tax on diesel engine vehicles

India's Road Transport Minister, Nitin Gadkari, has proposed an additional 10% tax on diesel vehicles to reduce fuel emissions and pollution. He warned automakers of even higher levies if they don't transition away from diesel. Currently, India imposes a 28% tax on diesel vehicles with additional "cess" based on engine capacity. Gadkari's comments sparked discussion among auto executives, with some describing it as a "bombshell." Pollution is a growing concern in India, and the government has been promoting electric vehicles (EVs) with tax incentives.

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Hybrid car sales enter the fast lane on growing penetration

Thehindubusinessline

Thehindubusinessline · 1y ago

Hybrid car sales enter the fast lane on growing penetration

Hybrid electric vehicles (EVs) are gaining popularity in India, with sales of hybrid cars surpassing diesel cars. Toyota and Maruti have experienced a surge in demand for their hybrid vehicles, indicating that consumers are considering hybrids as an alternative to diesel vehicles. Industry experts believe that hybrids will play a crucial role in the transition from internal combustion engine (ICE) to EVs. However, the adoption of hybrid vehicles in India is hindered by higher GST and road taxes compared to ICE cars. Rationalizing the taxes on hybrid EVs could accelerate their adoption and aid the switch to cleaner vehicles.

OEM Business Model Does Not Align Well With VCs: Blume Ventures’ Arpit Agarwal

Inc42 · 9m ago

OEM Business Model Does Not Align Well With VCs: Blume Ventures’ Arpit Agarwal

Indian VC firm, PI Ventures, is satisfied with its investments in the EV sector and currently has no plans for additional investments. The firm believes that the OEM business model does not align well with venture capitalists and sees more potential in software solutions for EVs. The rise of the EV industry in India is driven by factors such as reducing dependency on oil imports and geopolitical concerns. However, the firm suggests that the government's subsidy scheme could be more effective, possibly by implementing a green tax on diesel vehicles. The Indian EV ecosystem is evolving towards maturity and showing potential for growth.

Maharashtra hikes taxes on cars and vehicles by up to Rs 10 lakh. Here’s how much you have to pay now

Economic Times

Economic Times · 1m ago

Maharashtra hikes taxes on cars and vehicles by up to Rs 10 lakh. Here’s how much you have to pay now

Maharashtra has increased vehicle taxes by up to Rs 10 lakh, as per new guidelines effective from July 1. The tax hike applies to CNG, LNG, and high-end vehicles, with a 1% rise in motor vehicle tax for non-transport CNG/LPG vehicles. The maximum motor vehicle tax limit has risen from Rs 20 lakh to Rs 30 lakh, potentially generating Rs 170 crore additional revenue for FY 2025-26. Electric vehicles remain exempt from taxation.

Electric vehicle makers no longer need to be subsidised by govt: Gadkari

YourStory

YourStory · 11m ago

Electric vehicle makers no longer need to be subsidised by govt: Gadkari

Union Minister Nitin Gadkari stated that there is no need to provide subsidies for electric vehicle (EV) manufacturers as consumers are choosing EVs and compressed natural gas (CNG) vehicles on their own. Gadkari noted that the manufacturing costs of EVs have decreased with increased demand. He asserted that the government does not need to provide significant subsidies for EVs anymore, and that the reduced Goods and Services Tax (GST) on EVs compared to petrol and diesel vehicles is already beneficial. Gadkari expects the cost of diesel, petrol, and EVs to be the same in two years.

Nitin Gadkari wants states to push for GST cut on flex-engine vehicles —‘MDs of Tata, Suzuki & Toyota have decided to…’ | Mint

Livemint

Livemint · 11m ago

Nitin Gadkari wants states to push for GST cut on flex-engine vehicles —‘MDs of Tata, Suzuki & Toyota have decided to…’ | Mint

Union Minister of Road Transport and Highways, Nitin Gadkari, has urged state governments to support a reduction in Goods and Services Tax (GST) on flex-engine vehicles. He proposed lowering the GST to 12% for flex engines, cars, and scooters in order to promote these eco-friendly options. Gadkari emphasized the economic viability, technological advancements, raw material availability, and marketability of flex engines. Several automobile manufacturers, including Tata, Suzuki, and Toyota, have committed to launching flex engine vehicles in India. Gadkari highlighted the potential market opportunities and environmental advantages of using biofuels in these vehicles.

Do not go gentle into the scrapyard - The Economic Times

Economic Times

Economic Times · 1m ago

Do not go gentle into the scrapyard - The Economic Times

Delhi plans to impound and scrap old vehicles, identified by automatic number plate recognition cameras, as part of its effort to reduce pollution. Vehicles 10 years and older for diesel and 15 years and older for petrol will be targeted. Despite many being roadworthy, they belong to a previous emission standard. As these vehicles vanish, the city will become cleaner, leaving residents with nostalgic memories of once-familiar vehicles on their streets.

No diesel, petrol cars in India soon? Here's what Nitin Gadkari proposes for greener economy

Money Control

Money Control · 1y ago

No diesel, petrol cars in India soon? Here's what Nitin Gadkari proposes for greener economy

Indian Union Minister for Road Transport and Highways, Nitin Gadkari, has revealed his vision to make India a greener economy by ending the import of fuel and promoting the use of biofuels. Gadkari proposes slashing the Goods and Services Tax (GST) on hybrid vehicles and aims to rid the country of over 360 million petrol and diesel vehicles. He believes that by using biofuels and alternative fuels, India can become self-reliant and prosperous while reducing its dependence on fossil fuels. Auto companies like Bajaj, TVS, and Hero are also exploring the production of motorcycles and auto-rickshaws using flex engines. Environmental activists have welcomed Gadkari's vision but urge the need for renewable energy alongside electric vehicles to tackle the climate crisis.

City-wide crackdown on End-of-Life vehicles in Delhi; AI cameras, police teams enforce ban

Economic Times

Economic Times · 1m ago

City-wide crackdown on End-of-Life vehicles in Delhi; AI cameras, police teams enforce ban

Starting July 1, 2025, the Delhi government has enforced a strict ban on refueling end-of-life vehicles to combat air pollution. Petrol vehicles older than 15 years and diesel vehicles older than 10 years are prohibited from refueling at over 350 petrol pumps across the capital. AI-powered cameras and collaboration between the Transport Department, Delhi Police, and Traffic Police are being utilized to enforce this regulation at key refueling stations.

Intend to move away from conventional vehicles, focus on NEVs: JSW MG Motor Director Parth Jindal

Money Control

Money Control · 10m ago

Intend to move away from conventional vehicles, focus on NEVs: JSW MG Motor Director Parth Jindal

JSW MG Motor India is shifting its focus towards new energy vehicles (NEVs) and aims to move away from conventional internal combustion engine vehicles. Parth Jindal, company Director, stated that NEVs will be the cornerstone of MG going forward, with a target of over 50% of total sales coming from electric vehicles by 2024. The company recently launched its electric crossover utility vehicle, MG Windsor. It plans to introduce a new car every four to six months and aims to avoid traditional ICE vehicles, although it may consider certain models if the technology has not yet developed.

Stakeholders divided over state governments ending 100% road tax exemption for EVs

Money Control

Money Control · 1y ago

Stakeholders divided over state governments ending 100% road tax exemption for EVs

The state government of Karnataka, India, has decided to end the 100% road tax exemption for electric vehicles (EVs) and will impose a 10% road tax on EVs priced above INR 25 lakh ($340,000). This move raises concerns about its impact on efforts to make EVs more affordable and accessible for customers. Other states are also considering imposing road taxes on EVs, with Telangana already taxing them and Kerala imposing a 5% tax. However, states like Uttar Pradesh and Tamil Nadu continue to exempt EVs from road tax.

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