New Delhi, Jan 26 (IANS) Lower customs duties on imported cars under the proposed India-EU free trade agreement could help expand India’s small luxury car market, BMW Group India President and CEO Hardeep Singh Brar said on Monday.
Brar said the luxury car segment in India currently makes up only about one per cent of the overall passenger vehicle market, leaving significant room for growth if import duties are eased.
“There is a strong and positive signal of confidence in India’s long term growth story. India today is not just a large market, but a future ready economy backed by reforms and policies focused on building a globally competitive ecosystem,” he stated.
He said the India-EU Free Trade Agreement would be a historic step for both sides, as it would boost trade and encourage greater exchange of technology and innovation.
“The India EU Free Trade Agreement would be a historic milestone benefiting both sides by expanding trade and enabling deeper exchange of technology and innovation,” Brar mentioned.
From the automotive industry’s point of view, Brar said the agreement should include balanced and mutually beneficial provisions that support demand for luxury vehicles and strengthen supply chains, especially at a time of global geopolitical uncertainty.
Brar said a reduction in customs duties on completely built units, or CBUs, would make imported luxury cars more accessible and help widen the market in India.
At present, CBUs account for around five per cent of BMW’s total sales in the country.
“If customs duties on completely built units are reduced, it would help expand the luxury car market in India,” he added.
“While CBUs currently account for about 5 per cent of our sales, such a framework would allow us to broaden our product portfolio, introduce globally popular models and test new offerings,” Brar noted.
Brar noted that easing duties on luxury cars would benefit consumers without affecting mass-market carmakers, as luxury vehicles form only a small share of India’s passenger vehicle segment.
“This would make the policy a win-win for both India and the European Union,” he stated.
–IANS
pk
