German auto major BMW is yet to decide on its India strategy following the uncertainty caused by the announcement in the Union Budget about hiking import duties on completely knocked down units (CKDs).
According to the announcement, the government has decided to levy the same level of import duties on CKDs as that on completely built units (CBUs); a move that would increase the duty burden on companies importing vehicles. Players like BMW, Mercedes and Audi have presence in India and would be certainly hit by this measure.
BMW global board member, Ian Robertson told FE that the company is in negotiations with top government officials and political leaders and is awaiting a clarification on this regard over the next 2-3 weeks.
?At this point, it?s too early to comment on the impact of the move. But I think that we can come to a solution through various bodies,? Robertson said.
At present, the government levies 10% and 60% as customs duty on CKDs and CBUs respectively. Playing a party pooper, the government now proposes to increase the custom duty rate on CKD to 60% as well.
?(Correspondent?s travel was sponsored by BMW)