Major car companies are not happy with the frequent changes made in the automobile policies by the Indian government. Some of the global automakers are criticising the Indian market by phrasing ‘uncertain’.
The car companies said that the Government is demarcating the small cars in terms of their engine size. These cars benefit from lower excise duty of 12% against 24% for all other big cars due to latest introduction of additional excise duty.
According to some the global car makers, there is rapid fluctuation in India’s macro economic condition which is making the market unpleasant and uncertain.
The excise duty gap between big and small cars is galloping and creating disadvantages for bigger car manufacturers like Honda, Ford, Chevrolet, Mahindra, and Toyota. Also, the new banking policies have resulted in the higher interest rates which is daunting consumer confidence and affecting the large car market segments.