The Hindu Business Line : Automobiles likely to be brought under export incentives schemes

New Delhi, April 12 The Union Minister for Trade and Commerce, Mr Kamal Nath, on Saturday said he is likely to include the automobiles under the ‘focus market’-‘focus product’ scheme to be implemented under the Foreign Trade Policy 2008-09.

The auto industry is seeking incentives under the Government incentives for exports to tackle the appreciating rupee. The Society of Indian Automobile Manufacturers (SIAM) has also sought membership in the joint task force, announced by the Minister that would be functional in the next 30 days, consisting of representatives from the industry and Government both at the central and State level.

“We have asked for inclusion of the automobile sector in the ‘focus market’-‘focus product’ scheme and membership in the joint task force and the Minister has agreed to it,” said Mr Dilip Chenoy, Director General, SIAM.

The association’s export committee is being headed by Hyundai Motor India Ltd’s Senior Vice-President (Sales and Marketing), Mr Arvind Saxena. The move would benefit companies like Hyundai, which is one of the largest exporters out of India. According to industry estimates, last year the company incurred a loss of Rs 169 crore on account of appreciating rupee.

“This year the Government has added 10 markets under the focus markets scheme, which is a good indication. But not all these markets, except for Columbia, are of significance for the automotive industry.

“So we would suggest that markets like Brazil and Mexico, relevant for our sector, be included. And the Government looks open to new ideas,” Mr Saxena told Business Line.

Earlier, SIAM had said that Indian automobile companies were incurring huge costs on developing new export markets which were not a part of the scheme.

It had expressed its concern that in the current scenario of slowdown in the domestic automobile market, in the absence of Government incentives, the sector would also get affected on the export front.

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