Budget 2016: Additional cess on diesel, small cars unexpected, says RC Bhargava, Maruti Suzuki

The new cess on diesel, small cars is unexpected and there is lack of understanding about pollution in Delhi, says RC Bhargava, Chairman, Maruti Suzuki. In an interview with ET Now, Bhargava cites an IIT Kanpur study which states that cars constitute only 2 per cent of the particulate load in the national capital. Edited excerpts:

ET Now: Bit of a disappointment as far as auto sector is concerned, because just what we did not need when we are trying to kick start demand, the auto sector the additional cess on diesel up 2.5%, even on small cars as well. Does that come as a disappointment?

RC Bhargava: Yes, I think this was unexpected, and because it is supposed to link to pollution, there is a very poor understanding of what pollution problems in Delhi are and what causes them.

There is an IIT Kanpur study which has just come out a little while back, which I am not sure how many people have seen, says cars constitute only 2% of the particulate load in the air in Delhi. Now if 2% is the load, why are cars being targeted, especially when you are also saying that we must spend all the money required to get to Euro VI by 2020. Little hard to follow.