NEW DELHI, OCT 25: The director general of foreign trade (DGFT) has sent notices to all joint car ventures, including Maruti Udyog Limited (MUL), to furnish details about the import content in cars manufactured by them."The notices have been sent as a matter of routine," director general N N Lakhanpal said. The details will have to be furnished by the car-makers within a month.Industry sources said the notices had been sent following informal complaints lodged by some car manufacturers.
Objections were mainly raised after Hyundai Motors said it would not sign the memorandum of understanding (MoU) with the government for import of automobile kits as it had achieved over 60 per cent indigenisation.
Joint venture car-makers are obliged to sign the MoU to import car kits. As per the obligation, these car-makers will have to reach a 50 per cent indigenisation in three years and 70 per cent indigenisation in five years. Besides, they would also have to neutralise the foreign exchange outgo on car kitsimports through exports of car and automobile parts.
Car companies which have been sent notices by DGFT are Daewoo, Hyundai, Honda, Fiat, General Motors, Ford Mahindra and Maruti Udyog. Maruti had been asked to furnish the indigenisation level of its `Zen' model.
Maruti did not have to sign the MoU as it started functioning before the automobile policy was framed but DGFT sources said the company would have to sign the MoU if it goes for large scale imports for any new model.
But India's automobile policy has run into trouble with the European Union protesting against the indigenisation rules. It has dragged India to the World Trade Organisation (WTO) on the issue.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page