A senior Mercedes Benz official recently said that an increase in price of diesel is more preferable than an increase in excise duty. He said this in relation to the news of Diesel slated to becoming dearer by Rs 2 to 3. He said that an increase in excise duty will further pose as a threat to the already declining growth in Indian auto market.
Mercedes Benz India CEO and Managing Director Peter Honegg said “We are not very happy with the discussion on excise duty hike. The government’s idea will not help at all as it will not bring more money into the pocket of the government. Instead it will only dampen the already slowing down buying sentiment. We would rather prefer a hike in diesel prices by Rs 2-3 per liter as it will result in more revenues for the government”.