Need faster India-EU FTA implementation; delay will lead to customers postponing purchases: BMW

Besides, transparency and predictability in the quota regime will be important to ensure the intended benefits of the trade agreement translate into real market access without uncertainty, he said while addressing an event organised by the Federation of European Business in India FEBI on decoding India-EU FTA.

BMW Group India President and CEO Hardeep Singh Brar on Thursday called for a faster implementation of the India-EU FTA, saying a delay will lead to customers in India postponing purchases. Besides, transparency and predictability in the quota regime will be important to ensure the intended benefits of the trade agreement translate into real market access without uncertainty, he said while addressing an event organised by the Federation of European Business in India (FEBI) on decoding India-EU FTA. While the FTA will be beneficial in the long term, the auto industry will benefit from greater clarity, particularly in the implementation timelines, Brar said. ''We will request the faster entry into force of the FTA because there is a question that we are answering -- when is this going to happen? The delay in implementation will potentially lead to customers postponing purchases, which is not good because everybody is anticipating a lowering of prices,'' he noted. Brar further said, ''A clear visibility will help us in handling how we navigate this situation. So, timelines are extremely crucial''. At present, duty on imported cars is 110 per cent for vehicles priced above USD 40,000 and 70 per cent for those less than USD 40,000, he pointed out. In the first year when the FTA kicks in, it will come down straight from 110 per cent to 40 per cent, which is a ''significant drop'', he added. ''Customers keep on asking if they should wait. I keep telling them it is going to happen in 2027. So, if you are in a hurry, don't wait for that,'' Brar quipped. On the quota mechanism, he said none of the other industries has a quota except for the automotive industry. ''It starts with 1,00,000 units to begin with at different slabs, starting from 15,000 euros to 35,000, and above. We (European carmakers) all are contemplating where we will all fit in,'' he added. Brar further said, ''So, this quota mechanism, transparency and will be important to ensure the intended benefits of the agreement translate into real market access without uncertainty''. Going forward, he said, ''We remain confident that this FTA can become a cornerstone of India and EU automotive trade relations. The European automotive industry stands ready to invest, innovate and partner with India in this journey''.