• 18 Oct 2022 06:07 PM
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India should consider taxing passenger vehicles based on emissions: Nissan MD

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For a cleaner environment, India should consider taxing passenger vehicles based on emissions rather than length and engine size of vehicles, said Nissan Motor India MD Rakesh Srivastava on 18 October.

For a cleaner environment, India should consider taxing passenger vehicles based on emissions rather than length and engine size of vehicles, said Nissan Motor India MD Rakesh Srivastava on 18 October.

The Japanese multinational automobile manufacturer is looking to drive in its global sports utility vehicles, including X-Trail into the Indian market to strengthen its presence in the country.

Srivastava said multiple technologies such as hybrids must also be considered to curb air pollution through automobiles. "We can have different tax slabs based on the level of emissions," Srivastava said.

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Adding more, he said that the government already has a different tax structure for below four meters, above four meters, in terms of length and in terms of fuel. Under the GST regime, cars attract the highest tax slab of 28 per cent and on top of that a cess is levied.

As per details, small petrol cars with engine capacity less than 1200cc attract only 1 per cent cess, while diesel cars with engine capacity of less than 1500cc attract 3 per cent cess, on top of the 28 per cent GST rate.

Also, sports utility vehicles (SUVs), which include cars with length exceeding 4,000 mm and having a ground clearance of 169 mm and above attract a GST rate of 50 per cent.

The total tax incidence on hybrid vehicles in the country is 43 per cent, which is inclusive of GST, while battery electric vehicles attract a tax of about 5 per cent.

Expressing his opinion, Srivastava said, "I think the time has come, maybe, to look towards incentives in the market place based on emission levels, that is going to bring a cleaner and greener environment."

Nissan is mulling to drive models like X-Trail, Juke and Qashqai into the country, as it currently sells models like Magnite and Kicks in India. All the three models come up with different levels of hybrid technology.

The automaker announced on Tuesday that it is studying the feasibility of X-Trail and Qashqai for the Indian market. In the Indian road conditions, the testing has already begun for the X-Trail and Qashqai.

Once testing is complete, the X-Trail will be introduced for sale first, followed by other models, the automaker said.

"The Indian market has boundless potential, and it is critical that we introduce the best vehicle line-up to align with what modern Indian consumers want and need," Nissan India President Frank Torres said here.

Following the success of the Magnite in India, the company plans to strengthen focus and leverage its expertise on SUVs, he added.

The showcase of the three global products is part of the transformation the company intends to undertake in India, Srivastava said.

Nissan has been present in India for nearly two decades now but has so far remained a niche player with a low single-digit market share in the 30 lakh annual domestic passenger vehicle segment.