Import duty on cars ‘outrageous’: Merck – Times of India

New Delhi: Describing tariffs on imported cars as “outrageous”, Mercedes-Benz – the leader of luxury cars in India – has backed rival Tesla’s demand that taxes should be reduced, “or even double the cars to customers”. Buying at price is penalized. What buyers pay in the US and other western markets.”
Mercedes-Benz MD in India Martin Schwenk has said that import duties in India are very high and should be reduced immediately to help develop the market for new cars carrying global technologies.
“Please remember that at present it is not possible to localize all new technologies including electric in India, as we have low sales volume. We cannot get customers at these tariff levels,” Schwenk told TOI. The fee reduction is in line with what Tesla and its founder Musk have also appealed for.
“I support the demand. My only request is that tariffs should be reduced for all kinds of high-tech luxury products, not just electrics,” he said.
Musk said in a Twitter interaction in July that his company was ready to set up a factory in India, but first wanted “temporary relief” on import duties, which he dubbed “the highest in the world”. “If Tesla is able to be successful with imported vehicles, there is great potential for a factory in India,” he said, initially demanding an easier tariff regime before receiving actual investment.
Currently, India levies 60% duty on fully imported cars with a CIF (Cost, Insurance and Freight) value of more than $40,000 and cars costing less than the amount.
“This is a real impediment to the growth of the market,” Schwenk said, adding that the fee is around 10% in most international markets. “After all, it is the Indian customer who gets punished. I sell the same car in the US for half the price. The tax burden in India is too high, and slows growth.”
While some sections within the government are sympathetic to luxury players’ demands on a reduction in import duties, the Ministry of Heavy Industries – which sets policy for the country’s automobile sector – does not support the measure.