Anand Sivaraj

India-EU FTA To Benefit CBUs

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Collaboration is the way forward or so it is believed and the
proposed India-EU free trade agreement will not only benefit both the
countries but also auto enthusiasts like us. Expected to be signed by
April, the FTA will see the removal of import duties on automotive
products, resulting in price reduction of CBUs (completely built units)
by upto 38%. All CBU imports attract 60% duties which turns out to be
in excess of 100% with the addition of VAT and other taxes. This
results in doubling of the price of a car imported from Europe. The FTA
will also see the abolishment of 10% import duty on components from
Europe, reducing the prices of CKD to the tune of 9%.

Prices of cars of which components are imported and assembled
here will also go down, as the 10% import duty on components will be
scrapped. But the fall in prices will work out to 9% only. However with
the Japanese industry crying foul over the reduction in duties, it is
unlikely that you will be able to buy a Volkswagen Beetle for Rs. 13
lakhs anytime soon. A European Commission report has revealed that the
free trade pact would cost 4% of India

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If this happens, then the prices of European Supercars will drop down as;

Price_chart.jpg

-HT.

 

I'm too much harrased by the decisions of the Indian Govt., as at once they're Planning to add the Green Tax on Diesel cars & Stopping the presently 12% Excise benefits to Sub 4-metre cars and on the other hand they're paving the way for these Gas-guzzling luxury cars.
dr_nishu2011-02-24 15:35:15

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I am totally against this treaty. How much of a difference will it make for a rich man to save on money to buy a luxury brand?

In Indian we have just four UV makers and one Car maker compared to China's 300 odd car makers. we need to protect our own brands from getting perished against the wealthy and heavy weight brands. This will ruin our auto industry.

I protest. I'm with you Anand Mahindra & Ratan TATA..

UV makers:

TATA, Mahindra, Force & Sonalika

Only Car maker:

TATA Motors

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