Auto manufacturers to develop greener, compact carsAuto manufacturers to develop greener, compact cars; to combat fuel prices
Apnaloan.com Research Bureau
06 Jun 2008
Auto manufacturers are looking at a major transition in the auto industry by developing greener and more compact cars. This is in a bid to combat the on-going surge in the fuel prices and to stay competitive in the budget-conscious market.
Tata Motors has announced to introduce a petrol-electric hybrid version of Indica. Maruti Suzuki is also set to launch an LPG (liquid petroleum gas) version of its popular model M800. This is over and above the company's LPG variant of Wagon R.
Even Mahindra & Mahindra had unveiled a diesel-electric hybrid version of Scorpio at the recent Auto Expo in New Delhi.
These efforts of the manufactures will go to waste if they are not padded up with government support. An excise duty cut on hybrid vehicles from 24 per cent to 14 per cent is the step in this direction. Analysts feel that there is a need for further reduction in excise and import duties on all such vehicles and related components on such vehicles. This is to make them more price-competitive. Automobile manufacturers need to look beyond hybrid-electric and plug-in electric vehicles citing the staunch electricity crisis.