[suhaas307]

Putting everything else on the back-burner for now, let's look at the whole thing in another way.

This will in all probability prompt Tata and Mahindra into designing and engineering high quality, niggle-free cars at VFM prices. And that would be a really good thing for the local players and the masses.

They might still have to fork out more money for an import, but knowing that there is an Indian-bred sedan/hatch/SUV that offers similar levels of refinement for an even lower sum of money.

I don't see import-duties falling to figures as low as 10%, but even 40% duty is a substantial drop and it shouldn't affect sales of locally produced cars one bit while ensuring that these imports will be more accessible.

[rajneeesh]

I am really looking forward to the cut in customs duty so that we can afford decent cars at decent prices. In India, a City costs close to what an Accord costs in the US ( the recent depreciation of the rupee ma have chaged the picture a bit). Most European manufacturers are manufacturing small cars in India which are not likely to be impacted. It will be the luxury cars ( BMW, Audi, MB and JLR) which will really benefit. It will also result in expanding the Indian market and that may just make it viable for the auto makers to really manufacture the cars here rather than just resort to screwdriver technology wherein they assemble CKD's. An X1 at the price of a XUV 500 is something a lot of us deam about.


With Indian population and economy growing, we can well become a really big market for premium cars as well. Europe and US are ageing and China is also greying at a rapid rate due to its 1 child policy and rising life expectancy. I look forward to the day when JLR relocates atleast on of its plants to India . ( shouldn't be impossible in the next 5-7 years)

[magikrider]

I have been hearing something like this 5-6 years now... hope they finally implement it.
but i doubt that the car makers will pass on much benefit to the customers. instead they will fill their pockets more. the govt. should keep a check on this and see to it that the benefits are passed on to end users. for example.. had read about some EU car selling its car the CBU way earlier which was later localized quite a bit but the final difference in the price was hardly anything.

[kmirchia]

Has there been any update on this? Is there a deadline to when the decision has to be announced? Been searching Google like crazy but haven't been able to find an update.

[DukeNukem]

Originally Posted by kmirchia

Has there been any update on this? Is there a deadline to when the decision has to be announced? Been searching Google like crazy but haven't been able to find an update.

Germany's ambassdaor Mr. Steiner has acknowledged that the India-EU FTA would not happen this year.

Read more here: Source

[_raVan_]

From TOI:

Come 2017, you can hope to drive in the latest Audi or BMW at a considerably lower price as the government may lower the import duty to 30% by then and scale it down further to 20% in 2020 as part of the Broad-based Trade & Investment Agreement ( BTIA) with the 27-nation bloc.

In case of automobiles, when to reduce import duty to 30% is a bone of contention. EU is demanding that the levy be slashed to that level in 2017 itself, while Indian negotiators had got the Trade & Economic Relations Committee headed by the prime minister to agree to the cut sometime around 2022. The current tariff for import of automobiles is 100%, although the notified rate, which is applied to new cars, is 60%.

Link: http://timesofindia.indiatimes.com/b...w/17186637.cms

[sa_kiran]

Considering India's look east policy, I hope that such a treaty will be signed with Japan and other countries in that region. Suzuki, Honda and Hyundai cars and their dealers have performed better than European ones, till now.

Tata and Mahindra (may be Bajaj, Hero and TVS), time to pull up the socks again.

In my opinion, This should be done ASAP. First being European cars are more expensive when compared to Japnese/chinese, so more tax to the govt.

This is very much required for something called as Balanced trade especially with European countries. (I believe) Reducing the import cost from china or japan would create some balance in automotive segments.

Most of the imports are from china (from electronics, telecom networks, to footwear except gold and some items). If Automobiles are again imported with reduced import tax, then it would mean we are directly dependent on these two nations.

I believe in reducing the imports from china and japan would benifit india. This would increase the relationship with European countries which would benifit in the long run.

[StarrySky]

Ha! It's that time of the year again when imports from Europe are set to become cheaper

We have been having similar discussions on the forum almost every year. I hope India and EU finally sign the pact at least this year.

[mayankjha1806]

This has been in the talks for sometime now, EU keeps pushing and Govt of India keeps moving the dates (Hopefully for sensible reasons). This was supposed to happen in 2012, now 2017 and 2022. That in my view is too late to eradicate any advantages that EU manufacturers might have had.

If the duty goes down by that much, theoretically BMW/Audi should be available at half the price?

[satyaanveshi]

This may not mean as much as it sounds when it comes to Euro cars in general. The real beneficiaries of this will be small volume manufacturers such as Porsche, Bugatti etc for whom volumes in India may never be high enough to justify local assembly. In such cases, ex-showroom prices may go down by ~35%.

[sa_kiran]

OT, but may be related in some way!

Thai govt seeks preferential access for restaurants, massage parlours under trade pact - http://timesofindia.indiatimes.com/b...w/17188083.cms

For long, India's trade negotiators have dealt with tricky issues such as cutting import duties on cars, spirits or farm goods or allowing foreign lawyers and auditors to practice in India. But they had never come across requests for massage parlours or spas.

Well, Thailand — which is among a host of countries negotiating a bilateral trade deal with New Delhi — has demanded just that, and walked into unchartered territory. The demand also includes allowing Thai restaurants preferential entry into India. In addition, Bangkok has asked for dropping conditions such as local sourcing and minimum investment that are prescribed for retail chains that use the India-Thailand treaty.

Thailand may lose tourism dollars if so much of Thailand is available in India!

[invidious]

Are trade barriers good? Given how the Japanese single-handedly ruined the American auto industry in the 80s and 90s with their Lean manufacturing and awesome products, you would think that the French did a smart thing in protecting their Citroens and Peugeots. On the other hand, given the extremely low cost of labor in India and Indian manufactured cars having over 90% market share, there is nothing wrong in lowering the barriers in the luxury segment. Even today, most cars sold below are less than 7 lakhs. So, if an Indian consumer wishes to spend 12 lakhs on car - why must be settle for a lesser car than his consumer counterpart in Europe or USA? It is not fair. I would spend the 10 lakhs on a SMART car without hesitation but would not touch a Vento with a pole. So, who is the Government to deny me choices? It is not as if the manufacturing in the above 10 lakh range of Indian cars employs a lot of people.

[zenren]

I guess this means JLR cars would also get cheaper. Would love to see more of them on the roads.

Not sure if Tata Motors would be worried about EU competition or happy that they can sell more JLR cars with the lower price tag.

[GTO]

Naah, not happy at all.

I'm a firm believer of the "If you want to sell it here, BUILD IT HERE!" philosophy. When Audi can justify assembling the Q7 at Aurangabad, well, you can pretty much build any car here.

If this import concession has to go through, it should only be for cars above a certain pricepoint (say, 50 lakhs). Reason = Their volumes are too low to make a difference. But for cars with the potential of moving over 300 - 500 units in the local market, they must be "Made in India" only. Investments, job creation etc. are critical to the future of semi-urban & rural India (which is where car factories usually sprout up).

Originally Posted by mayankjha1806

If the duty goes down by that much, theoretically BMW/Audi should be available at half the price?

The luxury marques won't kill their so called "prestige" overnight. You can expect some correction, but certainly not 1/2 the price.

Originally Posted by sa_kiran

Thailand may lose tourism dollars if so much of Thailand is available in India!