Imported cars from Europe like BMW, Porsche to get cheaper with 10 % duty

Discussion in 'Indian Automotive Scene' started by Car Lover, Jan 29, 2013.

  1. Car Lover

    Car Lover New Member

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    [​IMG]Cars like Porsche can get a whole lot cheaper

    If you were dreaming of buying that sleek Porsche, well here is some good news that promises to make that dream a lot more closer to reality. Though it has not been made final but thanks to talks between the European Union and India there will be a 10% duty on a fixed quota of cars imported from the EU as part of a free-trade agreement being negotiated between the two sides. Yes, that means cars like Porsche, BMW will be available slightly more expensive than they are in Europe. That translates to a massive 50% duty cut from 60%.
    This move is 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. New Delhi is also considering reducing import tariffs by half from 60% to 30% 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.
    In exchange, India expects to get more visas for its professionals, a relaxation of EU norms that require manufacturers keep elaborate database on chemicals used in their products.
    This has also called in some responses with SIAM warning that imports will deter investments as foreign car makers would prefer to export their cars to India rather than set up manufacturing facilities
     

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