The Indian Government needs to define a consistent fuel policy for the auto industry with a long-term roadmap, said Mr Marc Nassif, Country Managing Director, Renault India.

Responding to a query on the Government's move to increase taxes on diesel powered vehicles, Mr Nassif said it is "distracting" if the industry has to crystal-gaze every March as to which way the policy will go, Mr Nassif told Business Line on the sidelines of the launch of its compact SUV Duster.

Investments in a powertrain last for 20 years and companies need enough time to respond to policy changes, said Mr Nassif. "We are not anti-change but without a roadmap it is impossible."

Referring to Europe which gave a 10-year roadmap when it decided that tax advantage on diesel fuel would go, Mr Nassif said this gave the company enough time to take a decision based on where the market would head. "In Brazil too, where there is no diesel, we had time to plan and get ready."

(This article was published on July 5, 2012)
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