Japanese Car Makers Demand Fair Play As EU FTA Is Under Discussion


Our readers must be aware of the earlier EU-FTA patch ups and government schemes, if not then we are going to tell our readers about the same. The Indian government has done a discussion on the EU-FTA. The discussion happened few days back to provide concession to European motor majors in India. This decision was proposed under the Indo- EU FTA (Free trade agreement). By this agreement (If passed) predictably European car makers will be able to sell their high end luxury cars and brands to India on a concession rate, but then it would also affect Indian automotive mart.

On the contrary hearing upon this kind of proposal some of the Japanese auto majors are disturbed and proposed a same kind of agreement. They want that there should also be an agreement which should provide same concession on the Japanese luxury brands and cars. The motor makers are Toyota, Honda and Maruti Suzuki which are disturbed and actually proposed the government about this. The auto majors want that an identical clause should be added into Indo Japan FTA.


These auto majors hold at around 50% of the auto mart in India. Company says that government should be a fair player in terms of providing liberty. On one of the press occasions the managing director of Toyota said that India should provide our company an identical level of trading and playing in motor making field. There should be taken a fair and equal decision for all the trading auto kings weather they are from Japan or from European auto mart. The official also said that this decision of the Government would be going to have harsh and negative effect on our company. If government only provides some concessions to European companies then it would be big disadvantage for us.

Supporting to the statement another official form Honda Motors added that playground should have same rules and regulations for everybody, thus government officials should think about the decision and if they are going to imply the EU-FTA then they should think about the Japan FTA too. We will not able to comment much on this as this decision has to be taken by the government.

Predictably what we think is that equality should rule over then what may be the industry is. Auto experts also says that if EU FTA happened then this would bring advantage and disadvantage too. The advantage would be that European luxury brands will be going to available for the consumers at a huge cut price. As per an example Mercedes Benz Sports car would get cheaper by at around Rs 1 crore. Thinking about the possibilities of future of luxury brand owning then one will say yes it should happen. On the contrary if we count a major disadvantage then it is this that auto mart of India would be going to have a huge loss and this can also effect Indian home auto makers. The (SIAM) Society for Indian automobile industry is opposing this rule and saying that as per this proposal India have to bear a big loss.Recently as per the Union budget and increase of 100% duties are levied on the import of cars.