Entry-level petrol cars may get costlier by ₹4,000:Mid-size diesel SUV costs could rise by ₹12,000 after govt hikes metal tax to over 15%

Buying diesel SUVs and strong hybrid cars in the country will become expensive. The effective import duty on platinum increasing from 6.4% to 15.4% is the reason for this. This will impact vehicles that use precious metals for pollution control. Auto companies may pass on the increased cost burden directly to customers. This could increase the prices of mid-size diesel SUVs by ₹12,000 and strong hybrid cars by up to ₹18,000. Entry-level petrol cars may also become expensive by up to ₹4,000. Platinum is used in vehicles to meet BS-6 standards. According to former NITI Aayog director Randhir Singh, the increase in duty on platinum will raise the cost of complying with pollution regulations. Companies like Tata Motors will be most affected. Mahindra’s expenses will increase on models like Scorpio-N, Thar, XUV-700. The cost of Toyota and Maruti’s strong hybrid cars will also increase. In hybrid vehicles, the engine starts frequently. Their filters require more platinum. Heavy vehicles consume more platinum Platinum is used in engines to prevent pollution. Since heavy vehicles use more of it, their manufacturing costs will be most affected. Relief – Cheaper platinum will be extracted from old silencers Only 7.5% tax will be levied on foreign platinum for silencer filters. The government has now reduced the tax on importing old and damaged filters from abroad to 4.35%. This will make it cheaper to extract platinum from damaged silencers and reuse it. This decision will promote recycling in the country. However, as platinum becomes expensive, vendors will now charge higher prices from auto companies. Impact – Customer interest in EVs may increase The high cost of platinum could increase demand for electric cars. These do not require catalytic converters for pollution control. Companies may also increase focus on hydrogen technology. With increased research, these cars could become cheaper in the future. Companies are currently assessing the impact of duty increases.