Slashing import duty might hamper domestic industry expansion: Tata Motors

Tata Motors comes out in opposition to the suggestion to cut import duty on cars imported from Europe as predicted under India-Europe FTA. The company strongly presented its point forward and told that this kind of short term policy will certainly hamper the expansion and growth of Indian auto industry along with investments in India. Tata Motors mentioned that with the liberal policy that it adopted has been pretty much successful in cajoling numerous international champions, which has thereby able to deliver positive results in assisting growth of the domestic automobile industry.

With the emergence of cut, such policy will form an uneven playing ground for the carmakers. According to the Managing Director of Tata Motors, Mr. P M Telang, slashing the import duties will hamper the growth of the Indian car marker and will craft out a jagged playing field. Therefore, such kind of short-term policy is unadvisable. Under the anticipated FTA or Free-Trade agreement legitimately hailed as BTIA or Bilateral Investment and Trade Agreement, Europe needs India to chop down import duties on passenger cars. Speaking up not in favor of any particular cause being given the priority, Mr. Telang said if in case the import duties are chopped down, it must be done for all regions.

He also mentioned that the industry along with Tata Motors should work together to decrease the import duties on passenger cars. Another cautious statement from Mr. Telang was that the government should be much more careful in taking such decisions and keep in mind that the investment in India doesn't come down that easily. When enquired about the advantages to JLR, better known as Jaguar Land Rover in terms of slashing down import duty on passenger cars imported from Europe, he mentioned that it is still a bit early to be precise. However, the firm has been trailing the government policy and has already commenced the assembling of Jaguar Land Rover cars in the country.