the biggest problem with his comments is this... the auto industry does what the government wants them to. government's responsibility is to set the emission standards. india is on bharat stage 3/4 currently. all the automakers comply with the regulations. it does not matter what fuel tech cars use as long as they meet the emission standards. and... the government also has taxes depending upon the car size... i believe bigger cars are taxed at higher rates. insurance is higher. government probably already makes more money from the diesel cars compared to petrol ones. SUVs are more expensive which means higher taxes for the government once again. industry gets little from the government though... roads? infrastructure? the scene is pretty sad. fuel quality is another issue that is largely related to government owned oil companies. government also charges damn high import duty on imported cars and components. companies comply with everything they are asked to. consumer pays the price they are asked to. so who is he to complain about the whole bloody situation? as for lower price of diesel... from what i see, diesel is not really subsidized. of course government probably is not making as much money on diesel sales as compared to petrol but i doubt they are losing any money on selling diesel at a price lower than that of petrol. the manufacturing cost of petrol and diesel is apparently half the market price. taxes makes up for most of the difference.