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