Abstract
The Indian auto industry faces challenges due to a lack of strict laws and regulations, resulting in outdated vehicles and many old cars on the road. The National Green Tribunal (NGT) has enacted rules and regulations to improve environmental conditions, such as regulating gasoline and diesel sales and conducting emission inspection programmes for in-use cars. Green taxes target pollutants or energy products to internalise environmental costs and promote sustainable consumption and production. The NGT has ushered in a new era of environmental consciousness in India by balancing economic concerns with environmental protection, aiming to leave a healthier and greener India for future generations. Green taxes apply to environmentally harmful products and services, taxing high-emission automobiles more to encourage pollution reduction. Green taxes can be emission-based or vehicle-value-based, and they can also tax diesel fuel to mitigate its negative externalities. Global case studies reveal that green levies in the auto sector have shifted economic activity towards environmental and social responsibility. The NGT works with automakers to improve fuel and engine technology and sustainability. The proposed auto fuel policy aims to reduce emissions and discourage dieselization by applying tighter requirements by 2010 and nationwide by 2020. However, weak monitoring and fund misuse have made green fees inadequately enforced. Enforcing pollution restrictions and promoting eco-friendly vehicle research could strengthen the NGT’s promotion of sustainable practices in the Indian automobile industry.