New Free Trade Agreement with EU to benefit the domestic car makers

Monday 26 December 2011, 11:53 AM by Vikas Yogi

The government of India is all set to announce the prospective new Free Trade Agreement with the European Union, in order to protect the margins and interests of the Indian automobile Industry. In a recent statement, Minister for Heavy Industries and Public Enterprises, Mr. Praful Patel said that the government of Indian would be offering waiver in taxes on some category of imported vehicles, in order to benefit the Indian automobile industry in the long run.

The signing a new free trade agreement with European Union will be benefiting a number of car makers in the Indian market. The agreement will be bilateral which means, the car makers will not only get benefited while importing the vehicle in India, but will also be receiving waiver in excise duties while exporting their vehicle to the overseas markets.

For instance, the country’s leading utility vehicle maker Mahindra & Mahindra, which is planning to launch the global portfolio vehicles of its South Korean subsidiary Ssangyong in the Indian market, would be getting lucrative waiver from the government’s side. At the same time, M&M’s India portfolio vehicles like sports utility vehicle XUV 500, to which it exports to the countries like South Africa and Brazil, would also be getting tax exemptions. Similarly, the country’s largest vehicle maker Tata Motors would also be benefited from this new free trade agreement in both domestic and overseas market.

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