Will Diesel Vehicles Vanish? Gadkari Warns Auto Industry Of 10% Pollution Tax

Society of Indian Automobile Manufacturers (SIAM), the apex body representing automobile manufacturers of the country, commemorated its 63rd Annual Convention deliberating on the way ahead for Sustainable Mobility.

Speaking at the convention,  Union Minister of Road Transport & Highways, Nitin Gadkari, not once but thrice warned the Indian Automobile Industry to stop producing diesel powertrains. He said if the OEMs (Original Equipment Manufacturers) don't stop manufacturing diesel powertrains, the government would have to impose an additional 10 per cent pollution tax on diesel vehicles, to make it difficult for the OEMs to sell diesel vehicles in the country.

Later, in a tweet, Gadkari clarified that the government is currently not actively considering this but cleaner and greener alternative fuels should be embraced. Emphasizing sustainability, Gadkari also mentioned that alternative bio-fuels are the future and requested OEMs to work on expeditiously increasing the share of green technologies, such as ethanol, electric and hydrogen. Higher use of biofuels will lead to aligning the auto industry’s approach with global biofuel alliance announced during the G20.

Concluding his speech, Gadkari said, the automotive sector serves as a growth engine for our nation, aligning with the Prime Minister's vision to elevate India from its current fifth-largest economy in the world to third and we should aim at making India the manufacturing hub of the world.

Today, 89 per cent of fossil fuel is imported and bio-fuels will help India solve the economic & sustainability challenges. In 2014, the global automobile sector was ranked 7th, but today, it has climbed to 3rd.