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Letters: Auto industry must own up

Business Standard 

Apropos “Auto companies lobby against tax on diesel cars” (June 7), the auto industry’s response to the move of increasing taxes on diesel cars clearly demonstrates lack of leadership and responsibility. Higher excise duty on diesel cars is unlikely to hurt overall growth of car sales — it will only decrease the sales of diesel vehicles. This may result in short-term losses for manufacturers who have invested in diesel engine plants. But auto companies could have avoided this situation in the first place by not relying on a market that is distorted by subsidies. To expect the government and the nation to bail them out now by raising the bogey of reduced growth is irresponsible.

S Balasubramanian Bangalore

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First Published: Fri, June 08 2012. 00:03 IST
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