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Porsches, BMWs may get cheaper
Posted on 30 Jul 201225,452 Views10 Comments
Government in talks with EU to slash import duty on European cars to 10 per cent
Cars manufactured in the European Union, including luxury makes such as Porsche and BMW, could be available in India at prices only marginally higher than in Europe as the government is likely to agree to a 10 per cent duty on a fixed quota of cars imported from the EU as part of a free-trade agreement being negotiated between the two sides.
India is considering allowing imports of 2.5 lakh car on which only a 10 per cent tariff will be levied, compared to the normal rate of 60 per cent, marking the first significant challenge the heavily protected Indian automobile industry has had to face from imports. The imports will be spread over five years, starting with 40,000 cars in the first year and rising by 5,000 units every year thereafter.
"We may bring down tariff to a low level of 10 per cent for a fixed quota of cars every year for five years. We think our industry can deal with this," a government official told ET. New Delhi is also considering reducing import tariffs by half from 60 to 30 per cent for cars outside the quota once the proposed India-EU free trade agreement is implemented.
The European Union is keen that India commit itself to extending the liberalized import regime for the quota of 2.5 lakh cars beyond five years, but New Delhi has said that it will review the situation after five years.
"We want to keep some room for maneuver if the need arises,' the official said. Greater market access for automobiles, wines & whiskies is on top of the EU's wish list for the FTA, formally called the bilateral trade and investment agreement.
Also read:Luxury car market to have slowest growth: Andreas Schaaf
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Readers' opinions ( 10 )
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ashutosh prabhakar
very nice
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Jim
dont know about you guys but i have to wait longer for my new car
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Naresh
We can not benefit ourselves each way, while we like open market policy when it benefit us but decry it when it benefit my competetor. Let us be mature to accept the reality of world.
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SHAMSHER
I DON'T THINK SO
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B Rodrigues
About time. The 4 WD MINI Countryman I bought in UK would cost me nearly Rs 40 lacs in India with all accessories included whereas I paid only around half of that.
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Mohd Maqbool Ahmed
Government reducing import duties on luxury cars is a welcome step.The people will get good cars at a more cheaper rate.This will also increase the competion in the Indian Car market.
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