What will be luxury cars will become expensive than Indo-Bitten Free Trade Agreement! Mercedes-Benz and BMW know what said
Last week, India and Britain signed a historic FTA, which will reduce tariffs on 99 percent of Indian exports and will make it easier for British firms to export whiskey, cars and other products to India, as well as promoting overall trade. Its aim is to double the two -way commerce by 2030 from the current 60 billion US dollars. India has included adequate security measures in the agreement to protect its sensitive areas and the import duty in the automobile segment will be reduced in 10–15 years.
Advocacy of free trade
Santosh Iyer, MD and CEO of Mercedes-Benz India, said the duty concession on import of petrol and diesel engine vehicles from Britain is limited to pre-determined quota. Originally, we have always advocated free trade as a multinational company, as we feel that free trade helps in better development. So I think for us, of course it is a welcome step, because it helps. The India-Britain Agreement and the India-European Union FTA are expected to cut the prices of cars.
Even today, barely 15-16 percent fee
Iyer said that about 95 percent of the cars we sell (industry) in India are CKDs. Which means that even today there is barely 15-16 percent fee. So expecting a heavy fall in prices, I do not think the same will happen with the FTA. He said that the second important factor is a quota-based system for imported cars. BMW Group India President and CEO Vikram Pawah said that the automaker supports free market access and lack of business obstacles as it is a winning position for overall economic development and benefits consumers.
Agreement will contribute to the broad view of India
Pawah said the Indo-Bitten FTA appears to be a historic deal that covers various aspects of mutual trade in goods, services and dynamics and will contribute to the broader approach of developed India. However, Pahwa said that the effect on the Indian luxury segment will become clear when there is more information about the fine details. He said that at the same time, BMW Group India has very strong local production and localization in the Indian market and is committed to it.
Latest business news
