Mercedes says change in India tax on diesel vehicles will affect fuel mix portfolio

Any change in taxation in India will change the structure of the fuel mix in Mercedes-Benz India portfolio, the automaker said on Tuesday in response to a proposal for an additional 10% tax on diesel vehicles.

“We will need six odd months to change our production planning processes but we can always vary and shift based on the demand as such,” said Santosh Iyer, managing director for Mercedes-Benz India.

The move could speed up electrification since diesel consumers may move to EVs or petrol, he said.