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|5th May 2009, 11:44||#1|
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Free trade Agreements, any impact on the car scene here?
India and Thailand have a free trade agreement. So what does it mean for the auto industry.
In the list given, there are lots of auto components like flywheels etc.,
So dues it mean that if a manufacturer imports stuff as CKDs they will save a lot of duty?
Any trade experts like to comment on this one?
Last edited by tsk1979 : 5th May 2009 at 11:47.
|5th May 2009, 17:50||#3|
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On the Innova for example, TKM India makes all transmissions and ships out to Thailand and local consumption and Thailand makes all engines?? etc and ships to both countries. This way, they dont need 2 exclusive transmission facilities. Honda also has a similar strategy for the City.
Last edited by Mpower : 5th May 2009 at 18:12.
|5th May 2009, 20:56||#4|
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So im guessing when the fortuner makes it to our shores we may have a bit of concession.
Why couldn't toyota do the same with the Prado and the camry.
Same with Honda Why make The Crv a Cbu when the accord is going the CKD route.
|5th May 2009, 23:49||#5|
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One answer, Volumes in the market.
An assembly line needs to justify its investment, a press shop too (for sheet metal parts), be it in India and/or Thailand.
You have sufficient volumes justifying the investment, you can win, remember you also need to put a really obscene amount of money in tools & dies, say the die for a front fender of the Ambassador in India costs 5 crores, multiply the number into the number of press lines you have (no of machines pressing out sheet metal parts of the same type)
Just the assembly line won't suffice, you need dies as well. Dies are relevant to the particular body shape or form of the final sheet metal product. You also need a paintshop if you are going to have a press brake shop - the machine which punches out parts of sheet metal is called press brake.
Again, you need a press brake to trim the metal from continous colled rolled sheets of metal.
Expensive to replicate a factory, that's why CBU/CKD help. Say the accord gets all its parts imported, you can then tailor your assembly line/trim line to accept that car.
|8th August 2009, 13:15||#7|
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India, South Korea ink free trade pact
Does this mean that Hyundai cars and parts will be cheaper now?
Source: India, South Korea ink free trade pact- Foreign Trade-Economy-News-The Economic Times
|8th August 2009, 13:36||#8|
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Funny. Had seen that news item, and was considering creating a thread, when GTO's thread on the EU's treaty comes up, I wait if somebody posts this news item there, and now this thread.
I have serious doubts if that will impact Hyundai in anyway. AFAICT, Hyundai's best sellers have highly localised components. At best, the components would be sourced from Korea. Or components would be directly sourced by the Korean parent from Indian component makers. Either way, we have something.
|31st January 2012, 11:44||#9|
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The India EU Free Trade Agreement for cars
Europe's carmakers are crying foul over a proposed trade agreement between the European Union and India, which they say would restrict access to one of their most important but highly protected markets.
The industry, led by Germany's powerful VDA carmakers' association, says the agreement as discussed would grant Indian-built cars immediate duty-free access to the EU but would only reduce the tariff barrier to European vehicle exports to a level of 30 per cent, which would stay intact indefinitely.
Full Text: Europe's carmakers hit out at India trade deal - FT Specials News - IBNLive
If it goes through, would it make European luxury brands significantly cheaper? A cut from 60% to 30% is pretty substantial.
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