Car Firms Plan Direct Import

Most passenger car majors, having failed to make a big dent into Maruti Udyog's market share, are now identifying the models they can bring into India from their parent countries. For, the restrictions on imports of completely-built units (CBUs) will be lifted after April 1, 2001.

However, much depends on the duty levied on CBUs, semi knocked-down and completely knocked-down kits. The present rate is 102 per cent.

And since this single rate structure "will be unbounded in nature", it can falter the plans of the companies, according to L N Lakhanpal, Director General Foreign Trade.

However, finance minister Yashwant Sinha will take a final decision on the duty structure by February 28, 2001.

 

According to Daewoo Motor India managing director Young-Chang Kim, DMIL has initiated a study on four to six models. While mentioning that it's still early to talk about the models, Kim said all of them "belong to the premium segment".

Fiat India Ltd is also planning to introduce Multipla, especially the CNG-run model, and is currently holding road tests. According to the company, it will not cost more than Rs 8 lakh to Rs 10 lakh.

General Motors India is already supplying Vectra, a mid-luxury car, to those who are eligible to import. As of today, an imported Opel Vectra costs between Rs 14 lakh and Rs 16 lakh on road, a GMIL official said.

Honda Siel Cars has already initiated a study to identify which cars it can bring in, what are the possible volumes and whether to go in for CBUs, CKDs or SKDs.

"If the volumes for a particular model are very high, it would make sense to go in for SKDs on which, we assume, the duties would be much lower," a company official said. However, Lakhanpal said that the duty on CBUs, CKDs and SKDs would remain the same. "The duties would not be lowered, " the DGFT said, adding that duties are levied to protect the domestic manufacturers. Speaking to Business Standard, B V R Subbu, Director, Marketing, Hyundai Motor India Limited said that his company has a lot to gain from the import of CBUs as the parent has a wide range of cars.