You think buying diesel cars make less sense these days? The government will soon make it difficult for OEMs to sell any diesel cars, trucks, buses or even generators. This is because Nitin Gadkari, Union Minister, Road Transport and Highways, will soon propose an additional tax on diesel vehicles and generators in a bid to discourage their sales. The minister made the announcement during the 63rd annual convention of Society of Indian Automobile Manufacturers (SIAM) in New Delhi on September 12. Here’s what union minister, Gadkari, had to say at the event.

While the auto industry has seen healthy increments in its growth and has been valued at 12,46,000 crore market size currently. Nitin Gadkari emphasised the need to shift towards electric mobility and biofuels, as well as alternate fuels. He pointed out that India is currently importing 89 percent of its fossil fuel needs and that is a big expenditure as well as the leading cause behind pollution. ‘I will request finance minister to put additional 10 percent GST on diesel vehicles, generators and other diesel burning products. Please reduce diesel PV production, if you don’t I will add tax on it.’ Gadkari said at the convention.
The minister urged industry stakeholders to start focusing on electric drivetrains and touted green hydrogen as the fuel of choice for the country. Gadkari said at the convention, ‘My house has ethanol generator, when SCANIA trucks can run on ethanol, why can’t Indian trucks. Do anything, but say bye bye to diesel. We will add so much tax that it will become difficult for you to sell diesel products.