European Union pitches for reduction on import duties on cars

Yogesh Sarkar

Administrator
European Union is pressuring India to reduce/remove import duty on European Cars, something which is being opposed strongly by Indian Automobile Industry.

The domestic auto industry is foxed with the latest demand from the European Union — to allow zero duty import of cars.

The proposal, which has come at the behest of the German lobby that includes global giants like Mercedes, BMW and Audi, has so far been resisted by the government but it has set off fresh fears in the industry that the government may agree to cut tariffs to as low as 5-10 % from the notified rate of 60%. After all, the government has done a series of U-turns on its position despite getting nothing much in return.

"We hope India does not give in," said Vishnu Mathur, head of Siam, the auto industry lobby group.

Source: EU demands duty-free car imports into India; domestic auto industry worried - The Times of India
 

Ace

Member
I hope they do reduce. These desi companies they just cry foul whenever they fear of more competition. Right now I have to buy a petrol car with abs and airbag and having hard time to decide as the indian rattle snake (read maruti swift) seems having breaking issue at very low speed and maruti is yet to officially accept and provide a solution. When I asked the dealer they said sir you need to use handbrake in traffic for very low speed break issue.
if the competition increases may be the companies would act better towards customer responses.
 
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Yogesh Sarkar

Administrator
India and European Union has almost finalized a trade and investment treaty, wherein car manufacturers from European Union will be able to import 2.5 lakh cars over a 5 year period at a concessional import duty of 10% and can import more vehicles at 30% import duty.

The bad news is, this treaty will only come into effect in 2017!
 

MudgilSushil

DC Junkie ....
2017 is still pretty far away IMO & such agreements are subjected to review as and when a new govt comes up... IMO this is a step backwards As instead of promoting local manufacturing , we are helping europeans in their economy and letting our Own sink. German chancellor is using her personal relations with MMS and pushing this thru But moron is not able to understand anything other than saying " Theek Hai " .

At a time, When jobs are not getting generated & economy is hanging by a thin wire , this is completely uncalled for ....wonder where is Mr MMS ' s PHD in economics...
 

ank12m

Member
.....
The bad news is, this treaty will only come into effect in 2017!
In fact this is good news!...at least for our own manufacturers! It gives them enough window period to pull up their socks and improve upon the shoddy overpriced lemons they have been offering here in India!

Afterall, people have been buying these low volume, niche segment European cars even with 100% import duty. But still it would be an altogether different and competive scenario if they decide to set up manufacturing shops here in India. But guess, the volumes do not justify tha...hence the imports/CKDs.
 

MudgilSushil

DC Junkie ....
In fact this is good news!...at least for our own manufacturers! It gives them enough window period to pull up their socks and improve upon the shoddy overpriced lemons they have been offering here in India!

Afterall, people have been buying these low volume, niche segment European cars even with 100% import duty. But still it would be an altogether different and competive scenario if they decide to set up manufacturing shops here in India. But guess, the volumes do not justify tha...hence the imports/CKDs.
Europeans are selling bigger lemons in india at higher price when compared to indian manufacturer . There are equal chance of getting a lemon from either of them.. Only diff is that you pay higher price for getting a niche lemon compared to indian one...
 

MudgilSushil

DC Junkie ....
Seems like our MMSji has set the cat among the pigeons! Eh mein ki kar ditta, madamji:grin:

Japanese carmakers like Maruti Suzuki, Toyota, Honda want sops similar to those proposed for EU firms - The Economic Times

Indian manufacturers (Tatas, Mahindras...), though expected, seem unperturbed?:confused:
MMS himself is a broken with no legs... most probably indians are unperturbed for 2 reasons

a ) either they have already settled the case under table

or

b ) they are sure that europeans cannot match them on pricing in indian market.. which is true as well....
 
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