The Japanese automobile manufacturers Toyota and Nissan have put their plans to launch their luxury brand of cars Lexus and Infiniti on hold awaiting the outcome of India’s free trade negotiations with the European Union. The carmakers are apprehensive that lower import duties and other trade related frills to European car manufacturers operating in India will pose tougher competition at lower costs.
European automakers such as BMW, Audi, Mercedes-Benz may get the upper edge in the aftermath of India’s Free Trade Agreement with the European Union. With that mind, Japanese car manufacturers are delaying their planned launches until further clarity in the scenario.
Toyota had plans to launch its luxury brand Lexus through its Indian subsidiary Toyota Kirloskar Motors in 2013. Nissan India was to launch its Infiniti range of cars in March 2012 but suspended the plan awaiting the final decision on the FTA with European Union. Other carmakers such as General Motors with headquarters in the United States of America have similar apprehensions about the FTA and have been demanding similar import duty cuts and benefits as the European automakers.
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