
“Most of these premium vehicle manufacturers are reeling under the impact of covid-19, which has dragged volumes to the bottom. Now, a delay in production might cause financial problems. The situation is serious. Otherwise, they wouldn’t have gone running to the Germany embassy for help,” the person said, requesting not to be named.
“Bringing in technology and pushing for Make in India is an awesome step and in right direction, too. But I think at the same time, the authorities need to be systematic and give a road map rather than implementing such policies overnight. All these steps will otherwise lead to business disruptions. Especially, the low volume players will get hurt badly and these sudden steps can actually hurt the reputation of Brand India,” said Puneet Gupta, associate director, IHS Markit.
Growth in sales of premium passenger vehicles in India has remained subdued in the last three years because of a continuous increase in import duty on components, which led to an increase in the price of such vehicles.
In the six months to 30 June, Mercedes-Benz, the largest luxury carmaker in India, sold just 2,948 vehicles amid an economic slowdown.
Source: Live Mint