Auto India, Car India

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Mercedez Benz, the ace German automaker has expressed its opposition to hike the excise duty on diesel cars in the forthcoming budget. The luxury car manufacturer says that such an increase in excise duty on diesel cars may hamper the growth of the Indian automobile sector especially the diesel car segment which is growing fast.

The Director (Sales & Marketing) of Mercedez Benz India, Debashis Mitra says, “Such a move is uncalled for as diesel consumption by the auto segment is very small.” “The government’s reported plan to levy higher duty on diesel cars will force the company to make amends in its production plans and increase the cost of production.”

The director’s view clearly indicates strong opposition to the step to be taken by the government in the budget due for next month. It also reflects the difficulties that would be faced by the automaker and others who cater to the diesel car segment of the automobile industry. Such a move would only deter people from purchasing diesel cars as they would be priced much higher than today’s market rate.

The Petroleum Ministry is said to have suggested the hike of excise duty on purchasing diesel cars to the Finance Ministry. Though the Petroleum Industry is in agreement with the excise duty hike, the Heavy Industries Ministry has opposed such a move in the budget.

Mercedez Benz has recently made it expansion plans in India clear through its launch of ‘Trendz’, a unique concept store at UB City, Bengaluru. Through such stores Mercedes Benz plans to offer its latest models to up-market customers through malls in various parts of India. Recently, the automaker added one more luxury car to its kitty, GL-Class ‘Grand Edition’. This marks its intention to increase its portfolio in the fast growing luxury car segment of Indian automobile market. The Grand Edition Executive model costs a cool Rs 60,99,000 whereas the luxury model comes with a price tag of Rs 65,50,000 (ex-showroom).

Apart from its recent moves in the luxury car segment, Mercedez Benz also launched its DTM racing car establishing its place in the sports car segment too. It has also set up a ‘Performance Driving Academy’ at the Buddh Internation Circuit, Noida through an association with Jaypee Sports International.

Mercedez Benz has recorded the sales of 7,430 cars in the year of 2011 marking a year on year growth of 30% as compared to 2010. It is also expected that the German automobile giant would grow at a double digit pace in the current year.