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Indo-EU FTA - Duty on luxury cars to be slashed

Discussion in 'Non FIAT Cars and two wheelers' started by ramjn, Apr 17, 2013.

  1. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,245
    Chennai
    Linea 1.3
    India and the European Union is working on a Free Trade Agreement, under which India may slash duties on luxury cars imported from EU. Jeeps to become relatively cheaper?

    Highlights

    - The long-running negotiations between India and the European Union on a free trade agreement (FTA) gained fresh momentum from the ministerial-level talks held in Brussels on Monday, with the two sides airing optimism about making further progress in the coming months.

    - India-EU trade grew from 759 million euro in 2003 to 3 billion euro in 2010. While these figures showed that the recent years had witnessed a substantial increase in trade and investment between the two sides.

    - India is in talks with the EU since June 2007 for liberalising their commerce in goods, services and investment.

    - The FTA would involve slashing of duties on over 90 per cent of the trade and opening up of the mutual markets for services and investment.

    - Europe wants access to a big market of 1.2 billion potential customers in India. Besides, the EU wants significant duty cuts in sectors like auto and wines and spirits.

    - Carmakers such as Toyota, Honda and Maruti Suzuki, which control more than 50% of the Indian market, are irked by the government's proposal to slash duties on luxury cars under the Indo-EU FTA. They demand a level playing field.

    Related news and sources
    Germany and India discuss Indo EU FTA
    Indo EU FTA gains momentum
    Demands from European Business
    Japanese car makers want sops as well
    1 person likes this.
  2. Jeeps are from Chrysler stable (US brand) and though they are in Europe market, do they have manufacturing units over there? If so, then I think this can be possible as it's known that Jeep in India is going to be CBU anyways. If not, then they may not get this privilege.



    Maruti Suzuki, long enjoyed a government patronage. In fact, they were a JV between GoI and Suzuki, not so long ago. And they are talking of 'level playing field':mad:
  3. shivraj5624

    shivraj5624 Amatore

    Messages:
    120
    Belgaum, Karnataka
    belgaum
    Linea 1.3
    Why are these Toyota , Honda, suzuki guys involving in this matter..Be happy with what you have guys.Would be a good news if FTA is agreed.:-D
  4. This may hurt local manufacturing as FTA is also going to be for used cars from Europe.
  5. Viny

    Viny Esperto

    Messages:
    1,742
    :)
    Ping pong game, nothing much expected anyway...govt backed media hype so that Indian companies make lot of noise and govt can say no to EU Demands or atleast give a ground base reason for non acceptance of demands. It happens always, peanuts might be thrown but no major cut outs are expected. FTA with Thailand didnt mean cheap Ninja's

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