India's road transport minister to propose additional tax on diesel engine vehicles

India plans to propose imposing an additional 10% tax on diesel engine vehicles in an attempt to reduce pollution from diesel vehicles in the world's third largest car market. Road Transport Minister Nitin Gadkari said on Tuesday he will make the proposal to the finance minister later in the day.

"Say bye to diesel soon, otherwise we will increase so much tax that it will become difficult for you to sell these vehicles," Gadkari said at a convention in New Delhi. Shares in Indian automakers Tata Motors, Mahindra and Mahindra and Ashok Leyland fell between 2.5% and 4% after the minister's comments.