General Motors India has voiced its opinion about the proposed additional tax on diesel powered passenger cars. Mr. Lowell C. Paddock President and Managing Director General Motors India stated that such a move would not only adversely affect the growth of the Indian automobile industry but would also have an impact on the manufacturing industries that are connected and are dependent upon the automobile industry for a significant portion of their operations.
Further slowdown in the already sluggish automobile market in India will in turn reduce the manufacturing industry’s output, said Mr. Paddock. He also added that in the eventuality of an additional tax on diesel cars in the Budget 2012-13, the company is prepared to take appropriate action. General Motors India’s powertrain facility at Talegaon is equipped to manufacture both petrol and diesel engines and thus enables it with better flexibility to cope with any change in the scenario, stated Mr. Paddock.
Commenting on the ongoing talks with the European Union regarding the proposed free trade agreement, Mr. Paddock opined that India must strike a balance with regard to the relaxation in import duties such that the European importers may not enjoy any undue advantage which may prove harmful for the non-European carmakers in India.