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A rationalisation of customs duties on imported luxury cars would help stimulate demand in the premium segment, leading to higher overall tax revenue for the government, according to Mercedes-Benz India Managing Director and CEO Santosh Iyer. Besides, a more stable macroeconomic policy and improved fiscal management to arrest the ongoing decline of the rupee would help luxury car makers, which have been forced to increase prices due to rising input costs that, in turn, have had an impact on demand, Iyer told PTI when asked about expectations in the upcoming Union Budget. Terming GST 2.0, under which rates were rationalised last year as "a very positive step", he said, "The same should happen for customs duties as well". At present, imported passenger vehicles priced below USD 40,000 attract a basic customs duty of 70 per cent, and those priced above USD 40,000 are taxed at an effective customs duty of 110 per cent. "This customs duty can be rationalised and brought under one slab..
China's auto exports surged 21 per cent in 2025, driven by rising shipments of electric vehicles, while domestic demand slowed, an industry association said Wednesday. As Chinese automakers expanded further into overseas markets, exports of new energy vehicles such as EVs and plug-in hybrids doubled from the previous year to 2.6 million units, according to the China Association of Automobile Manufacturers. Overall vehicle exports from China passed 7 million units, up 21 per cent from the previous year. Chinese car exports are expected to continue to grow this year, as its automakers maneuver against an intensifying price war at home as demand weakened. In all of last year, passenger car sales in China rose 6 per cent to 24 million units. But sales in December fell 18 per cent year-on-year. Automakers have enjoyed help from government trade-in subsidies meant to encourage people to switch to EVs, but demand has slowed recently as those payments were curtailed. Confronted with grue
The government should soon come out with the final notification for the next phase of India's Corporate Average Fuel Efficiency standards so that the industry can prepare accordingly, according to a senior Toyota Kirloskar Motor executive. The government released draft rules for the latest Corporate Average Fuel Efficiency (CAFE) standards last year, which will regulate passenger vehicle fuel consumption and carbon emissions between April 2027 and March 2032. "With the CAFE norms supposed to be effective from 2027, it will be really good if the government can issue the final notification soon, because that will give clarity to work towards it," Toyota Kirloskar Motor Country Head and Executive Vice-President Vikram Gulati told PTI in an interaction. He noted that the regulation is important as it sets targets for lower carbon emissions for passenger vehicles. "We believe that this regulation has to be in sync with the other national programs of the government, and hence it must ...