New Delhi, Jan. 26 The Government’s recent move to relax norms for import of luxury cars beyond the country of origin has received flak from the apex industry body, Society of Indian Automobile Manufacturers (SIAM), the National Automotive Testing and R&D Infrastructure project (NATRIP) and a few foreign car makers.
In fact, NATRIP has also suggested that the Government should keep the bar high for cars that can be imported from any country. The stakeholders have raised concerns fearing that imports could increase further as a fallout of the new regulations.
“The decision has been unilaterally taken by the Government. This can certainly lead to uncontrolled imports,” said a senior official with SIAM.
Concerns in tow
Industry officials feel that the new policy could lead to sub-standard models or those not fit for Indian conditions might find their way into the market. The current notification allows cars of above $40,000, with an engine capacity of more than 3000 cc for petrol run vehicle and 2500 cc in case of diesel, to be imported from any country, even where it may not be produced. Earlier a car made at BMW’s or Audi’s plant in Germany could be imported, but not from a country where it does not make or assemble the car.
“The proposal, which is a few years old, was in the context to allow import of super luxury cars like Rolls Royce and Bentley, which are sold in limited numbers. But, at present, $40,000 (roughly Rs 19 lakh) is not much and there are numerous models available in this range. We have requested the Government to either raise the bar on the price of the models that could be allowed or put a cap on the number of vehicles that can come through such regulations,” said an official with NATRIP on condition of anonymity.
The concern over the increasing grey market was also cited by the BMW India President, Mr Peter Kronschnabl.
“The new norms could increase grey market imports. Many of the models may get imported in the domestic market without sufficient back up with parts for service and support. This may make it difficult for consumers, (and) also ruin the brand image of the model,” said Mr Kronschnabl.
Cheer for some
Though some of the other car makers did not foresee any major impact, Toyota welcomed the decision.
“Earlier we could import cars that had to meet both the conditions of European emission norms and of being produced in that country. But now with the country of origin clause no longer required, we can import it from Japan,” said Mr Sandeep Singh, Deputy Managing Director (Marketing), Toyota Kirloskar Motor India.
Source : Business Line