India is considering the implementation of a 10% additional tax on diesel engine vehicles as a proactive measure to address pollution concerns within the country.
Nitin Gadkari, the Road Transport Minister, unveiled this proposal with the aim of elevating the cost associated with the purchase and sale of diesel-powered vehicles.
He stressed the imperative to curtail the usage of diesel vehicles, cautioning that failure to do so could lead to a substantial escalation in the tax rate.
Following this announcement, the stock prices of Indian automakers such as Tata Motors, Mahindra and Mahindra, and Ashok Leyland experienced a decline ranging from 2.5% to 4%.