'India-EU FTA may lead to flooding of Euro cars in Indian mkt'
Hyderabad: The proposed India-EU free trade agreement may pave a way for some European car majors to flood the Indian automobile market with their vehicles, a senior official of Honda Cars India Ltd (HCIL) said here Friday.
The Indian government should create "a level playing field" for the auto industry in the country, Honda Cars India Ltd (Marketing and Sales) Senior Vice-President Jnaneswar Sen said.
"This kind of FTA is going to remove that level playing field...Europe (automobile market) is not growing. It is only de-growing. It is very easy for some of them to sell the same cars here," he said.
Speaking to reporters after the launch of Honda's sedan 'Amaze' here for Andhra Pradesh market, Sen said, "This (FTA) is going to impact everyone in terms of investment, employment generation. All we want is a level playing field."
"It is not just car manufacturers, but also others, such as suppliers of spare parts, who will be affected by the (proposed) FTA," he added.
Speaking on 'Amaze' he said, "With the launch of 'Amaze', equipped with both petrol and diesel technologies, we are expanding and reaching out to new customer segments."
EU is demanding heavy duty cuts to ensure sale of its automobiles. However, the auto industry in India is strongly opposed to duty cut in the sector.
Notwithstanding the differences resulting in delay in inking of India-EU free trade agreement, Commerce and Industry Minister Anand Sharma had yesterday said the negotiations are progressing "very well".