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Auto industry raises concerns over proposed changes in import regulations

Press Trust of India  |  New Delhi 

The automobile industry is concerned over a proposal by the government to allow imports of up to 2,500 units without the need for adapting to Indian regulations, according to sources in the sector.

The in June had sought feedback from stakeholders to amend the Central Motor Vehicles Rules for allowing import of right-hand drive vehicles with compliance certificate from the country of origin.

The move would allow import of maximum of 2,500 completely-built units or semi-knocked down kits each year.

The vehicles could be shipped in by the manufacturers or their authorised representatives.

Currently, the government allows such imports only of cars which are priced over USD 40,000 and bikes which are above 800 cc engine capacity.

In normal practice, imported vehicles for sale in have to undergo process to conform with the Indian regulations, including safety and emission norms.

"The problem with this move is that any kind of vehicle -- a bus, truck, car -- can be brought into the country. With this, units could be brought from anywhere including and it could impact various segments which are already reeling under low offtake," an industry player, who did not wish to be identified, said.

The move is against the spirit of 'Make in India' as it would encourage foreign manufacturers to import products into the country, he added.

When contacted, (SIAM) said while relaxing import conditions for a limited number of vehicles for R&D and scientific purposes is understandable, 2,500 could be a large number for certain segments of vehicles which is not very desirable to come under relaxed norms.

Analysts, however, had a different opinion.

Grant Thornton LLP Partner Saket Mehra said the government move would help global OEMs to have hassle-free certification of vehicles in

"This is a step to simplify business, save time and effort spent on homologation, help foreign auto manufacturers evaluate India's auto market and firmly decide in local manufacturing," he added.

It may also boost the launch of new models and alternative powertrains in the country, Mehra said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, August 12 2018. 13:40 IST