Amid the ongoing debate on the proposed hike in the excise duty on diesel cars, carmakers through Society of Indian Automobile Manufacturers (SIAM) have been voicing their opinions and majorly opposition for the proposal. Mercedes-Benz on February 1, 2012 has stated that it is against any extra cost imposition on the diesel cars and that such a decision would have an adverse effect on the growth of the Indian automobile industry.
According to Mr. Debashis Mitra Mercedes-Benz India Director (Sales and Marketing), the current level of diesel consumption is a very portion of the total consumption and hence an excise duty would be an unnecessary move with possible unfavorable outcomes. He adds that if the excise duty is levied on diesel cars, Mercedes-Benz will be compelled to review its production plans and to accommodate the increase in the cost of production.
The company’s sales have grown 30 percent in 2011 in comparison to its sales in 2010.