The recently proposed cut on the import duty on cars from Europe as contemplated in the India – EU FTA (Free Trade Agreement), has found strong opposition from Tata Motors. The company staunchly believed that such short term policy amendments would result in slow growth of the India’s automobile industry along with disrupting the pattern of the investment.
The proposed agreement, termed as Bilateral Investment and Trade Agreement (BTIA) states the proposal of Europe that the import duty on their passenger cars should be reduced.
Mr. Telang, Managing Director, Tata Motors, while speaking about this proposal said, "It will hinder the growth of the industry. It will also create an un-level playing field and any short term policy shift is not advisable." As per him, curtail on import duty should be unbiased for all regions and proposal should be collectively passed by the industry after structured deliberations.
The company is said to be benefitted with this policy in terms of import duty cut on its Europe manufactured Jaguar Land Rover, on which Mr. Telang commented, "We had been following the government policy. We have started assembling of JLR models in India. In future also, we will follow government policy."
The company showed its deep concern that the Government should cautiously move forward with such liberal policy as it would adversely affect the investment in the economy.
