India's auto-exports to reach $35-42 billion by 2016

According to a study, done by Ernst & Young and the EEPC (Engineering Exports Promotion Council), India's automotive exports should touch the magical figure of $35-42 billion by year 2016. Dr Rahul Khullar, the Commerce Secretary, has said that sector should be competitive without taking protection behind high import tariffs, he was briefing to reporters, after releasing the study. Raising question on high tariff duty, he said that, do you seriously believe that with such high import tariffs, you will build a world-class auto industry in this country.

At present, the completely built units attract an import duty of 106 percent in total, while for completely knocked-down units it is 60 per cent on an average. At the same time, the auto components attract import duty in the range of 7.5-10 per cent. If a reduction in import duty takes place, car makers from Japan and EU (European Union) will be among the most benefited ones.

The auto industry will soon move out of Detroit and Germany as it was not possible for them to remain competitive at their present wage rates and skill sets, said Dr Khullar. Commenting on the adoption of the green technologies, he said, India will also lose out if it does not gear itself to changes including electric and hybrid cars, climate change, green consciousness and carbon emissions, as well as high fuel prices and the regulatory changes across the world.

Auto Industry in India is growing at a good pace, with attracting leading car makers from around the word to launch their cars in India. In first quarter of the year many new cars has been launched in the country including the popular small cars like Chevrolet Beat, Ford Figo and Volkswagen Polo. The compact car segment is already very competitive with popular cars like Maruti Swift, Hyundai i10 and i20, Fiat Punto and Skoda Fabia. 

Read More on : Fiat Grande Punto price