tax breaks: India should consider taxing passenger vehicles based on emissions: Nissan Motor India Rakesh Srivastava MD

India should consider taxing passenger vehicles on a base basis threw out rather than the length and engine size of vehicles, for a cleaner environment, Nissan Motor India MD Rakesh Srivastava said on Tuesday.

Nissan, which is looking to bring its global sports utility vehicles including the X-Trail to the Indian market to strengthen its presence in the country, said many technologies such as hybrids also need to be considered to curb air pollution from cars.

“We can have different things tax slabs depending on the emission level,” Srivastava said during the call, adding that the government already has a different tax structure for cars below four meters, above four meters, in terms of length and in terms of fuel. Under the GST regime and goods, cars attract the highest tax of 28 percent and tax is levied in addition.

Small petrol cars with an engine capacity of less than 1,200 cc attract only 1 percent tax, while diesel cars with an engine capacity of less than 1,500 cc.

Similarly, sports utility vehicles (SUVs), which include vehicles longer than 4,000 mm and ground clearance of 169 mm and above, are subject to GST at 50 percent.

In addition, the total tax on hybrid vehicles in the country is 43 percent, including GST, while battery electric vehicles are taxed at around 5 percent. “I think it’s time to maybe look for market incentives based on emission levels that would bring a cleaner and greener environment,” Srivastava noted.

The company, which currently sells models like Magnite and Kicks in the country, is looking to launch models like X-Trail, Juke and Qashqai in the country.

All three models have varying levels of hybrid technology.

On Tuesday, the automaker announced that it is studying the feasibility of the X-Trail and Qashqai for the Indian market.

Testing of X-Trail and Qashqai in Indian road conditions has already started. With a special focus on their adaptation to Indian roads and varied terrain, the tests will assess each vehicle’s ability to meet customer needs.

Once testing is complete, the X-Trail will go on sale first, followed by other models, the automaker said.

“The Indian market has limitless potential and it is imperative that we introduce the best vehicle lineup to meet the wants and needs of today’s Indian consumers.” Nissan India This was announced by President Frank Torres.

Following the success of the Magnite in India, the company plans to increase its focus and leverage its expertise in SUVs, he added.

Srivastava said the showcase of the three global products is part of the transformation the company intends to bring about in the country.

When asked if the new launches will help the company capture market share, he noted, “We are appealing to understanding…it is important for us to demonstrate Nissan Brand strength in India and this is the first thing we would like to do in the Indian market, based on the mind share of our customers, the volumes will be.” The car evaluations are part of a holistic study that Nissan is undertaking to prepare for its future in of India.

The broad overview also includes ensuring future localized production for the long-term viability of domestic and export production, as well as exploring the long-term potential of electrification.

Nissan has been present in India for nearly two decades now, but still remains a niche player with a low single digit market share in the 30 lakh annual domestic passenger car segment.