Shares of auto firms are under pressure in opening trades on reports that the government might as well impose a special tax on diesel cars, says a BS report.
Tata Motors, Mahindra and Mahindra and Maruti Suzuki India are down 1-2 percent on the National Stock Exchange. The CNX Auto index is trading down by around one percent in contrast with 0.17 percent dip in the benchmark index Nifty at 0920 hours, noted the report.
“The Union Petroleum Ministry has asked the Finance Ministry to impose additional excise duty on diesel cars and the matter is under consideration," the report said citing a government official as saying. Government of India is contemplating on imposing additional cess of Rs 170,000 on small diesel cars and Rs 255,000 on medium and large diesel vehicles, added the report.