“The biggest dampener could be higher tax on diesel vehicles. There is a misconception that if diesel tax goes up, sales of petrol vehicles will rise. If Cenvat is raised to 12 per cent, it will pave the way for GST, which will be a growth driver. Besides, the amount allocated for electric and hybrid vehicles would determine how serious the government is about promoting R&D in the segment.
Pawan Goenka
President (automotive and farm equipment), Mahindra & Mahindra