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Japanese auto major Toyota is urging the Indian government to have a relook at the definition of small cars and fix the tax rates based on the pollution level, not on the length.
Toyota’s submission comes on the back of the auto industry’s proposed transition to new emission and safety regime.
“With the advent of new emissions and fuel norms, the whole technology paradigm will be changing. Car makers will have to re-modify the parts and wiring . So, the size and weight of the cars have to be changed to accommodate the new norms. This means cars will expand. Therefore, the government should redefine what is a small car, big car and hybrid or electric,” Shekar Viswanathan, Vice-Chairman and Wholetime Director, Toyota Kirloskar Motor told BusinessLine . “What are the criteria to fix the tax rates? Do we stick to old definition of small cars. That definition was fixed many years ago,” he said.
Based on the Auto Policy 2002, small cars are the ones with maximum length of 3.8 metres.
Explaining further, Viswanathan said that besides weight and size that determine emission norms, there were also other factors to decide emissions.
“The definition to make it all-inclusive,” he added.
“Of course, there are companies who have made investments based on the old definition. But can you stick with the old definition for all time to come. So the definition should focus on pollution which affects the common man rather than length,” he pointed out. “Less polluting vehicles should pay less tax. Because, a technical criteria based on pollution level would be seen as a right way of evaluating a vehicle,” he said.
Continued patronage to sub-4 metre vehicles will not augur well for the country as a whole and will send a signal that the government was not encouraging latest technology.
Viswanathan asserted that with the quantum leap to BS VI by 2020, India needed to have less polluting vehicles. “As a concept, we can have small cars. But, we must look at pollution per person. New regime should facilitate companies to focus on technology, and not the length of the vehicle,” he added.
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