Mercedes-Benz India CEO Advocates for Customs Duty Rationalisation on Luxury Cars
Santosh Iyer, the CEO of Mercedes-Benz India, has made a strong appeal to the government. He wants a rationalisation of customs duty on imported luxury cars. This move aims to stimulate market growth and bring Indian policies in line with international norms.
Current Duty Structure and Its Impact
The current customs duty on imported luxury cars in India stands at a high rate. This significantly increases the final price for consumers. Iyer points out that this duty structure hampers the growth of the luxury car segment. It makes these vehicles less accessible to potential buyers.
High duties discourage imports and limit consumer choice. They also affect the overall automotive market. A reduction could lead to more competitive pricing. This would benefit customers looking for premium vehicles.
Benefits of Rationalising Import Duty
Rationalising the customs duty offers several advantages. First, it could boost sales in the luxury car sector. More affordable prices might attract a broader customer base. Second, it aligns India with global trade practices. Many countries have lower duties on such imports.
This change could enhance market dynamics and foster healthy competition. It might also encourage other luxury brands to increase their presence in India. The overall automotive industry could see positive ripple effects.
Mercedes-Benz India's Perspective
Mercedes-Benz India has been a key player in the luxury car market. The company believes that duty rationalisation is crucial for sustained growth. Iyer emphasises that this is not just about reducing costs. It is about creating a more vibrant and inclusive market.
The CEO highlights that such a policy shift would support the government's vision. It aligns with initiatives to boost manufacturing and trade. A balanced approach could benefit both consumers and the economy.
Looking Ahead
The call for duty rationalisation comes at a pivotal time. The Indian automotive industry is evolving rapidly. Luxury car segments hold significant potential for expansion. Addressing duty structures could unlock new opportunities.
Stakeholders are watching closely. Any changes in policy could reshape the landscape for imported luxury vehicles. Mercedes-Benz India remains hopeful for a positive response from authorities.
