Toyota said it would be unfair to Japanese carmakers in India, who have invested more and for a longer time, if Europe-made cars get import duty incentives under the Indo-European Union Free Trade Agreement.
The company said that during negotiations for the Indo-Korean and Indo-Japan FTAs automobiles were strictly kept out of negotiations while import duties on cars have figured in the FTA negotiations with Europe which has been pressing for a duty cut.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Toyota said the government should maintain a level playing field; if there is to be any relaxation in duties, it should be applicable to all companies.
Hiroshi Nakagawa, managing director, Toyota Kirloskar Motor, said: “I don’t think the government can take one decision on Japan and another one on Europe. If something happens it should be for the entire industry. It should be fair to all.”
Japanese carmakers led by Suzuki account for almost 52% of the Indian passenger vehicle market. Europeans take just 4% but have only recently established a foothold.
India’s heavy industry minister Praful Patel has written to prime minister Manmohan Singh and commerce minister Anand Sharma, warning that such a reduction would give unfair advantage to the European car industry.
