Union Minister Nitin Gadkari Warns Carmakers: “Say Bye To Diesel Soon, Otherwise…”
Union Transport Minister Nitin Gadkari issues a stern warning to Indian car manufacturers, urging them to limit diesel vehicle production. He hints at possible tax increases if the industry doesn’t transition towards cleaner fuels and emphasizes the need for environmental responsibility.
Union Transport Minister Nitin Gadkari delivered a firm message to Indian automakers during the 63rd Annual SIAM convention in New Delhi. He cautioned that unless car manufacturers take steps to reduce their production of diesel vehicles, the government might resort to significant tax hikes, making the sale of diesel cars a challenging endeavor.
Call to Embrace Cleaner Fuels
Expressing concern about the environmental impact of diesel vehicles, Gadkari referred to diesel as a “hazardous fuel.” He highlighted how the growing demand for diesel has led India to rely heavily on fuel imports, a situation that raises environmental and economic concerns.
Gadkari emphasized the importance of embracing cleaner and greener alternative fuels that are cost-effective, indigenous, and pollution-free. He stressed the need for these fuels to serve as import substitutes, aligning with the nation’s commitment to achieve Carbon Net Zero by 2070 and reduce air pollution levels.
No Immediate 10% GST Hike
Initial reports had suggested a possible 10% GST increase on the sale of diesel vehicles. However, Gadkari clarified that no specific proposal for such a tax hike is currently under active consideration by the government. He encouraged carmakers to transition towards environment-friendly fuels like ethanol and green hydrogen.
Decline in Diesel Car Production
Gadkari noted a positive trend in the automotive industry, stating that the proportion of diesel cars has decreased significantly, from 53% in 2014 to 18% at present. He regarded this shift as a favorable development for the environment. To further promote eco-friendly transportation, he called upon automakers to reorient their manufacturing strategies.
Industry’s Response to the Transition
In response to the changing landscape, some leading car manufacturers, including Maruti Suzuki and Honda, have already ceased the production of diesel passenger vehicles. This shift aligns with the broader global trend towards electric and cleaner mobility solutions.
Gadkari’s stern warning underscores the urgency for the Indian automotive industry to adapt to more sustainable practices, promoting the development and adoption of eco-friendly vehicles for the benefit of both the environment and public health.
Sources By Agencies
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