Saturday, March 17, 2012

Budget 2012 : : Diesel Cars to Rule the Roads

Budget 2012 has been presented by Finance Minister yesterday and based on the budget speech it seems that the Auto Industry have somethings to cheer and some areas which are likely to hit the growth.

First The Positives:

1. As expected, the hike in Taxes & Duties on Diesel Cars has NOT been announced. This means that the Diesel Cars WILL NOT get expensive (apart from Luxury & Big Diesel Cars).

2. Subsidy on Diesel Fuel continues thereby Diesel will not be expensive and the attraction for Diesel Cars will continue. ( Sorry but the waiting period for Diesel Cars will increase).

3. Car Companies Stock (especially, those having good share of Diesel Car sales)  will continue to rise/gain as their sale will not decline.


1. Small cars will have price increase not more then 1 to 2 % as a result of increase in Excise Duty from 22 % to 24%.

2. Large cars will see greater price increase up to 5 to 7 %

3. SUV (completely imported and/or Assembled in India with imported parts) will get expensive by 15 to 20%. While multi-national companies will be negatively impacted, Mahindra & Mahindra will not be effected by this and will gain in sales as their SUVs will be relatively cheaper.


  1. Diesel cars are now in high demands for the rise of petrol price. The only question arise is how much the diesel car would long last in compare to petrol cars.

  2. Absolutely. There are some positive signs which guides that diesel cars will rules the roads in the new year. That is true that price of diesel cars won't be hike and those could not be more expensive.