[TusharK]

The ministry of road transport and highways may allow foreign carmakers to import 2,500 vehicles per year in order to promote local manufacturing. The carmakers will not have to go through the hassle of getting their vehicles certified in India if the models have already been homologated in the country of manufacture.



If the amendment is approved, then brands would be able to test the Indian market before taking a call on setting up local manufacturing operations. It will enable manufacturers to import up to 2,500 completely built units (CBU) or semi-knocked down units (SKD) without going through any certification process in India.

This proposal has been included in the June 6, 2018 notification for the amendment of the Central Motor Vehicle Rules 1989. Stakeholders have 30 days to submit their recommendations on the draft policy.

The move comes in the wake of increased taxes on imported automotive components introduced to encourage local manufacturing.

Source: Livemint

Link to Team-BHP News

[giri1.8]

Seems like a good idea, but wish to know how tax structure would be made for these 2500 units, will it be same as the current duties for CKD and CBU, or will there be any changes?

This news might be game changer for low volume players, we do deserve more options. Will our first proper luxury electric cars make it through this way? Hope so!

[aim120]

This could just be the thing Elon Musk needs to test the Tesla model 3 demand in India.

But this policy is still a draft and could be years before it's implemented.

[avira_tk]

This proposal should be shafted now itself, it rewards fly by night operators and manufacturers who have committed investments and built sales and service networks will be punished. This move is regulatory capture and I'm guessing the only beneficiary is Indian owned.

[itsashishsharma]

Just wishful thinking. If such a quota can be given so that manufacturers can actually launch a car at a price point where they would actually launch it if it was to be manufactured here, I am day-dreaming that I am booking a Focus RS hatch at around ₹ 16-18 lac and as Ford finds out that there is a market for quality hot hatch, they actually launch it here.
Just imagine Subaru and Mazda taking this route to gauge their market potential.

[sgiitk]

Originally Posted by itsashishsharma

Just wishful thinking. If such a quota can be given so that manufacturers can actually launch a car at a price point where they would actually launch it if it was to be manufactured here, I am day-dreaming that I am booking a Focus RS hatch at around ₹ 16-18 lac and as Ford finds out that there is a market for quality hot hatch, they actually launch it here.
Just imagine Subaru and Mazda taking this route to gauge their market potential.

I am all for this approach. Initially I thought it is primarily to cater for the high/top end of the market. Now I realize that test marketing is also a point to consider, esp for new brands. Of course spares / service will be question mark.

[avishar]

Interesting policy. I am not sure if it would promote local manufacturing, but it could encourage some unexpected moves. Maybe Cadillac can come in, setup showrooms overnight and start selling the Escalade? Audi can immediately get the new A1 and start selling it. Mitsubishi can kick-start operations by importing Mirages and selling them.

[sabby_4c]

So this is only for certifications, nothing regarding the duties / taxes.

I always thought a great idea to bring various manufacturers (auto and others) to set up shop is a tax holiday for 2/3 years so they can get the idea of the market demand before taking risk and setting up plants.

[asr245]

Originally Posted by itsashishsharma

I am day-dreaming that I am booking a Focus RS hatch at around ₹ 16-18 lac and as Ford finds out that there is a market for quality hot hatch, they actually launch it here.
Just imagine Subaru and Mazda taking this route to gauge their market potential.

Yes, you are day-dreaming. A Focus RS costs over $40K in US, so chances of it being less than 30L at today's exchange are pretty slim.

[Viraj_Guru]

+1

Originally Posted by asr245

Yes, you are day-dreaming. A Focus RS costs over $40K in US, so chances of it being less than 30L at today's exchange are pretty slim.

At 30L price point my day dream would be Hyundai i30 N with with 2L turbocharged petrol engine mated with six speed manual transmission.


But as you said chances are less as the government intention is to give exposure of more models of vehicles to people with very unlikely reduction in the import duty, however manufacturer now no need to spend money & time on mandatory local testing. Let's hope.

Here are the picture's of i30 N taken from their website.

Cheers.
Guru.

[GTO]

There is no difference in import duties; the only difference being that 2,500 cars can be imported & sold without the need for ARAI certification. Now, we must remember that the certification is anyway not required for cars costing over $40,000. Thus, it affects only cheaper models.

This one has Tesla Model 3 written all over it. Of course, a different matter that the world has yet to see a Model 3 under $40,000 .

If you ask me, I don't see why ARAI certification is required for any car that has been cleared by more competent authorities overseas. I mean, if the US EPA & NHTSA has certified a car, is there anything else the ARAI needs to check? Their standards & requirements are far, far higher than ARAI's.

Originally Posted by avishar

Maybe Cadillac can come in, setup showrooms overnight and start selling the Escalade?

Cadillac is unaffected by this rule because of the cost of the Escalade.

Audi can immediately get the new A1 and start selling it.

Yes. But it'll only save them a handful of months & bucks. I don't think it's going to make a world of difference.

[sgiitk]

Originally Posted by GTO

If you ask me, I don't see why ARAI certification is required for any car that has been cleared by more competent authorities overseas. I mean, if the US EPA & NHTSA has certified a car, is there anything else the ARAI needs to check? Their standards & requirements are far, far higher than ARAI's.

I agree but then ego comes in, how can we accept someone is at least as good as us, if not better. Strictly in my view, ARAI should accept certification by competent overseas agencies, as long as their specs are not too different from ours.

[aravind.anand]

Originally Posted by itsashishsharma

Just wishful thinking.
Just imagine Subaru and Mazda taking this route to gauge their market potential.

Its just wishful thinking I understand, but even then this will certainly not help manufacturers who have not set foot in India at all. Sure, they can pay the taxes and bring them in, but what channel would they sell it through? And without after-sales or service support how many of us would want to plonk in huge sums of money on a car? What would happen to the car and its owner of the experiment fails and the company decides to quit after the 2500 units?

So in all likelihood, this would favour the existing players to try and see if a hybrid model, or a niche segment vehicle would generate interest. And the biggest gainers if this were to be implemented would be companies who want to build their brands here like Ford did with the Mustang, Mitsubishi tried with the Lancer Evo X, Nissan with the GT-R, Fiat with their 500.

[ariesonu]

UPDATE
Import of foreign cars, bikes gets easier as Centre removes roadblocks

https://timesofindia.indiatimes.com/...w/65802017.cms

EXCERPTS:
The new norms notified by the road transport ministry though have some riders.
Each company can import only up to 2,500 units annually of a car or a two-wheeler complying with internationally accepted standards.

Regards-Sonu

[vharihar]

Originally Posted by ariesonu

UPDATE
Import of foreign cars, bikes gets easier as Centre removes roadblocks

https://timesofindia.indiatimes.com/...w/65802017.cms

EXCERPTS:
The new norms notified by the road transport ministry though have some riders.
Each company can import only up to 2,500 units annually of a car or a two-wheeler complying with internationally accepted standards.

Regards-Sonu

I am not an economist, but whatever little economics I know, leads me to believe that this is a disastrous step at a time when the USD-INR ForEx rate is already battered! Instead of taking steps to stop the worsening INR, such a step would hasten the INR's worsening.

What am I missing?