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Tax on diesel cars in Delhi irks automobile makers

NEW DELHI, July 22 (Reuters) - The Delhi government has imposed a new 2 percent levy on diesel passenger vehicles in the city, triggering strong protests from automobile manufacturers.

"The step is retrograde and should not be introduced," the Society of Indian Automobile Manufacturers, which represents India's leading vehicle and engine manufacturers, said.

Analysts said the move could hit sales of firms such as Tata Motors , Mahindra & Mahindra and Toyota Kirloskar, as Delhi is India's largest market for passenger vehicles.