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India Car Deliveries Face 4-Month Wait Amid Red Sea Crisis
9 May
Summary
- Car deliveries in India could extend to four months due to shipping disruptions.
- BMW Group India CEO noted strong demand despite increasing waiting periods.
- Proposed India-EU trade pact may significantly lower import duties on premium cars.
Car buyers in India may face extended waiting periods of up to four months for vehicle deliveries, a stark increase from the current 1.5 months, if current shipping disruptions persist. These supply chain issues, stemming from the West Asia war, have led to vehicles and raw materials being held up in transit, impacting the company's ability to meet demand. BMW Group India's CEO highlighted that despite these challenges, demand remains resilient, attributing recent growth partly to favorable tax policies.
The proposed India-European Union free trade agreement is anticipated to bring about lower import duties on premium European vehicles. This pact could facilitate the import of more high-performance European car models into India. Officials suggest that duties on these imported premium cars might fall to 30%-35% from the current 66%-110% over time, within specific quota limits. These concessions are specifically targeted at the premium segment, with safeguards in place to protect India's mass-market automobile sector.
