[Linuskm]

Originally Posted by akhil_007

I have been reading online articles and responses on TBHP and everywhere the chorus is that India will be spared or will be neutral or will be least tariff imposed nation. Unlike other countries who can retaliate/talk from a position of power, what exactly is our trump card?

-Why would US or EU or any other country be OK with India imposing crazy tariffs on
imports? Its not like we are "smooth talkers" or the "best negotiators" in the world.

Guess it is the access to Indian markets and potential growth of business which keeps them toned down when it comes to India.

[raviemailid]

India has the world's highest import duty on cars. Customs for imported cars is based on the CIF (Cost, Insurance, and Freight) value, with cars valued above US $40,000 incurring a 100% customs tax and those below facing a 60% duty. Used vehicles face a 125% import tax. Not to forget, there is 28% IGST on the total value (car cost + custom), and then there are registration and RTO charges.

China has 15% tariffs on the import of cars.





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Duties serve two primary roles - generating tax revenue for the government and protecting domestic industries. However, the current structure of our import duties has created a heavily biased environment that shields Indian manufacturers from global competition. This cushion discourages them from raising their game, knowing they won’t be seriously challenged by international players.

Worse still, the corruption further deters foreign companies from setting up high-quality, efficient production units in India.

True innovation thrives under pressure. When companies are forced to compete, they bring better, smarter products to market. But thanks to our protectionist policies, we are still being served decade-old models like the Swift, Punch, Bolero, and WagonR etc!

Take Mahindra for example - it took them four years to launch the BE.6, a product with components sourced globally. In that same time, BYD doubled its global footprint. That contrast speaks volumes. Mahindra knows the kind of protection it enjoys in India, it can never become a global player!

If we keep insulating ourselves under the guise of protectionism, how can we ever hope to get global products!

[carjack3090]

Originally Posted by raviemailid

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True innovation thrives under pressure. When companies are forced to compete, they bring better, smarter products to market. But thanks to our protectionist policies, we are still being served decade-old models like the Swift, Punch, Bolero, and WagonR etc!

Take Mahindra for example - it took them four years to launch the BE.6, a product with components sourced globally. In that same time, BYD doubled its global footprint. That contrast speaks volumes. Mahindra knows the kind of protection it enjoys in India, it can never become a global player!

If we keep insulating ourselves under the guise of protectionism, how can we ever hope to get global products!

Though I completely agree with 40 percent rate, I want to point out 2 flaws in your arguement

1. Punch was launched in 2020, Swift is a global product tailored for India, Bolero is a rural low cost product and WagonR is the car on which cab companies run in India, and nothing is wrong in that. This is unnecessary self whiping when not required. Every market has its demand and there is no need to feel bad that India's car market has a certain taste for now which renders let's say Cars like Qashai useless but rewards cars like Punch/Magnite/Swift

2. Mahindra's INGLO platform was first shown in 2022, they took their time developing that platform cause it was their first time and frankly that platform + Cells are what matters, not that they get Harman Kardon system or Valeo motors. We cannot just say they didn't work hard and call them assemblers just on our whims cause they have put in over 10,000 crore on that platform.

Finally my last take is I don't understand why the first argument from any Indian regarding cars is almost always a throwback to 30 year old License Raj policy when Ambassadors and Premier Padmini were exclusively sold. You cannot compete against Hyundai, Suzuki, Toyota, Kia, Ford, GM, Daewoo etc. and win against them unless you keep innovating.

[It's Magic]

Originally Posted by raviemailid

India has the world's highest import duty on cars.

If we keep insulating ourselves under the guise of protectionism, how can we ever hope to get global products!

You are right, but there is an argument from the other side of the coin. If we don't protect our local players, who would?

So, as you suggested, if we remove or significantly lower current duties, foreign players might dominate the car market. Our local players will have a very hard time competing with the advanced cars launched by these players.

I think it's fair from the government's point of view to protect local players, but as you suggested, global players shouldn't be taxed too much, which would either make them hesitant to enter our market or launch products at high prices, making local players feel relaxed.

[lionheart_mm]

I dont see this happening ever. At the best there would be a slight drop in the % of tarrif levied.

[Sahil]

There is a lot of external pressure on India to stop protecting its auto industry. This is good for us as consumers hence I for one am putting all luxury car purchases on hold till there is clarity on this. There could be a big shake up coming up soon!

[carjack3090]

Originally Posted by Sahil

There is a lot of external pressure on India to stop protecting its auto industry. This is good for us as consumers hence I for one am putting all luxury car purchases on hold till there is clarity on this. There could be a big shake up coming up soon!

Praying to all gods there are that India holds up and doesn't budge under the pressure. Despite all advantages as consumers (although I don't get the European are special theory) I wish government doesn't budge into the trap of a failing economy

[TROOPER]

Good luck hoping for 0% import duty.

And bold of anyone to assume greedy companies are going to pass on even minor import duty cut benefits to consumers. These are the same companies who behave as if they're on the verge of bankruptcy when there are warranty claims or a high paying customer comes across a lemon.

[Sedated]

Originally Posted by punto_

I can understand it might be an issue — but when I’m paying the same amount and can get a much better product, why should I get an inferior product as a consumer!

My point is, the local players got a very long time to build themselves up and now we should be able to go with this. Hopefully the local players better products or undercut if they provide slightly inferior quality. Let the consumers decide!

It’s a cycle and changes such as this will be felt by the common man even though unrelated. When such imports are allowed sales will plummet for a lot of players who are domestically manufacturing providing jobs to many. They will cut down those jobs and that will affect others.

[FocusAssist]

Contrain view here. I want Indian manufacturers to flourish and go deeper and wider into the market. Mobility access to a lot of Indians by Indian companies. Lets say we do 0% tarrifs. EU companies might be able to dump their 3rd world offerings instead of engineering cars here in India.
EU engg costs are through the roof (hence they want lower tarrifs) Hence, if they really want to tap into the market. Engineer and build here. That's the game.
We get to train our engineering talent and make world class products. Will help other industries as well.
0 tariff is a non starter.

[Sebring]

I just want BYD to be available cheaper (Though, a chinese car).
Man, what a beast!

[m8002?]

Originally Posted by FocusAssist

EU engg costs are through the roof (hence they want lower tarrifs) Hence, if they really want to tap into the market. Engineer and build here. That's the game.
We get to train our engineering talent and make world class products. Will help other industries as well.
0 tariff is a non starter.

I dont think the EU will bring to India the cars made in Europe. Like you said, it will be too costly even with 0% tariffs.
But they can easily dump cars made in their factories in China, Thailand, etc. Those cars can be priced lower than the Indian cars and call kill the Indian car makers. It can also result in not growing their Indian factories for new models for existing OEMs like BMW, VW, etc.

Is that good or bad thing in the long term, is a different issue.

[Jeep Yatra]

I have been staying in the GCC for the last 10 years. All the cars there are at less than half their cost in India. The rupees 2.5 crore Land Cruiser in India costs only 75 lakhs in Dubai. It is high time that the Indian government reduced the import duty. Over the last few years the talk of reducing the duty in India was gaining momentum, though nothing solid was happening.It took Trump's strong intervention for the Indian government to consider it seriously. At least the duty should be reduced to 20-25%. If more people buy cars, the increased sales volume could offset some of the potential loss for the government

[PreludeSH]

This will surely have no impact on Maruti given the kind of cars they make. Even the Koreans might not have any impact.

Others might see their sales rise if they introduce newer models without having to make them here. Margins will be good without investment for local production.

Looking at Tata and Mahindra, they will have their segments like truck, goods moving vehicle market in tact. The beta testing they do involving customers will have to be stopped

The govt can still control it based on tax, creating new slabs like engine capacity, fuel consumption, length, ex-showroom price etc. They will also have to provide incentives in tax breaks for production facilities, import of equipment for factories.

[SunaPana]

Originally Posted by PreludeSH

This will surely have no impact on Maruti given the kind of cars they make. Even the Koreans might not have any impact.

Others might see their sales rise if they introduce newer models without having to make them here. Margins will be good without investment for local production.

.

I don't think it will affect any car maker which sells cars under and around 20 lakhs. It will greatly bring down luxury car prices and cars like Octavia, Superb, VW Golf etc which are CBU will also have their prices cut down.

May be we can even see newer brands from Europe enter.