Auto stks dip on profit booking as govt proposes green tax for old vehicles

Ashok Leyland, Bharat Forge and Tata Motors from the auto index were down in the range of 3 per cent to 4 per cent.

Shares of automobile companies, including tyres and auto ancillaries companies, were trading weak on Wednesday as investors booked profit after the government proposed the introduction of ‘green tax' on transport vehicles (buses, taxis, trucks) older than eight years in the range of 10-25 per cent of the applicable road tax.

The Union Minister for Road Transport and Highways Nitin Gadkari, on Monday, said his department has approved a proposal to levy ‘green tax’ on old vehicles polluting the environment. The proposal will go to the states for consultation before it is formally notified, according to a Business Standard report.