Ford plans to launch small cars in India
Duty cut on small cars
Reducingthe excise duty on the small cars alone has actually widened the gapbetween small and other car segments. The excise duty on the mid-sizecar now stands at 24%, double that of a small car, which isdisappointing for the customers of mid-size and larger cars.
However,we would agree that there is also a huge market for mid-size and largecars. Having said that, I do agree that the India growth story willhave a positive impact on the small car segment in the country, but itwill also increase the market for the mid-size and larger cars.
Itwould be good to have a level-playing field and a uniform policy inthis regard, which will benefit the auto industry on a macro level andthe consumers at the same time.