41951 Investors following Mah and Mah. Share this News with them.
0
Like this story, share it with millions of investors on M3
M&M's Pawan Goenka bats for dual pricing of diesel
President of the automotive business at M&M, Pawan Goenka tells CNBC-TV18 that an upfront tax will hurt growth and suggests dual pricing of diesel as an alternative.
The scorching growth of diesel car sales has caught the government's attention, and indications are that the finance ministry may impose an Rs 80,000 tax on diesel vehicles in this year's Budget.
As expected, industry players like Mahindra & Mahindra are up in arms. President of the automotive business at M&M, Pawan Goenka tells CNBC-TV18 that an upfront tax will hurt growth and suggests dual pricing of diesel as an alternative.
"They have to find ways and means of either reducing the gap in the diesel price or have dual diesel pricing," he said to Swati Khandelwal Jain.
According to him, this shift towards diesel vehicles has been due to their outperformance and not much to do with the huge gap between diesel and petrol prices. "If you were to increase price of diesel by 75 paisa, that will be equivalent to increasing diesel tax by Rs 80,000," he added.
