Tata Motors has voiced its concerns regarding the proposed reduction in the import duty on car imports from European Union (EU) in the free trade agreement stating it to be a short term policy shift that may have a negative impact on the growth of the domestic car industry. The company is of the opinion that such a policy may provide undue advantage to the European automobile manufacturers thus disturbing the current equilibrium and balance between the domestic and international auto players, stated Mr. P M Telang Tata Motors Managing Director (India Operations).
He adds that if such a policy be implemented, the import duty reduction should be effected for all the regions and thus should be equal for all foreign manufacturers. Moreover, Mr. Telang also emphasized the need to analyze the possibility of reduction of investment in India as a result of this policy.
Tata Motors owns the British automaker Jaguar Land Rover various models of which are currently being assembled in India. Benefiting from the proposed policy in the form of reduced import duty on car imports, the company plans to follow the government’s policy.
