Toyota asks govt to remove "unique regulations" in auto sector

To make the ambitious 'Make in India' programme successful in the auto sector, the government should "eliminate unique regulations" like low tax for cars below a particular size, Toyota Kirloskar Motor's Managing Director Naomi Ishii said.
While noting that India had 5-10 times more regulations than Thailand or Indonesia, he also said 'Make in India' initiative will enhance India's competitiveness.
When asked to explain "unique regulations", he refereed to the sub-4 meter regulation.
At present, a car with a petrol engine capacity under 1,200 cc or diesel engine under 1,500 cc and with a length shorter than four meters attracts an excise duty of 12 per cent. However, if the length is more than 4 meters, the duty could go as high of 30 per cent depending on the size of the car.

"Make in India will give us a very good opportunity to promote exports more from India because our export strategy globally is based on competition," he told reporters here.
Toyota is present in the Indian market through a joint venture with the Kirloskar Group -- Toyota Kirloskar Motor (TKM).

"So we are in a global competition... So 'Make in India' initiative will promote a lot of competitive activity to enhance its (India's) competitiveness... But at the same time we will have to eliminate unnecessary unique regulations in India," Ishii said.
The more you have unique India regulations here the less you have the opportunity to export, he added.

Toyota exports Etios series cars from India. In March, it exported 1,290 units. For 2014-15, the company exported 17,650 units from the country.
He said changing regulations in India make introducing new cars in the country difficult.
"India is always changing the regulations very quickly. On the other hand to introduce a new car it takes a lot of time, planning and development time. It takes around four years on an average, so the fluctuation in regulation makes a lot of problem in preparation," he said in reply to a question on company's plans to launch new models.
Toyota Sales Group Managing Coordinator, Akitoshi "Etioshi" Takemura said the company has reinforced product line in the country.

"We just should not get into the things which we see now but based on the current knowledge, we have to think of scenario four years down the line. We have developed a capable team and now we are are talking to our headquarters to develop the key products and the results you would see 2018 on wards" he added.
When asked about the company's sales expectation for the current year, Ishii said: "We would like to maintain our sales as last year. We sold around 1.35 lakh units last year and would like sell the same number this year, maintaining around 5 per cent market share in the Indian market".