Mercedes-Benz MD urges for removing discrimination in Excise duty

Bangalore, Jan 13 (UNI) Leading luxury car maker Daimler Chrysler today urged India to remove discrimination in excise duty between big and small cars to be removed to ensure proper growth of the big car segment.

Daimler Chrysler India Chief Executive Officer and Managing Director Wilfred Aulbur talking to newsmen here today said India had a great potential for luxury cars, but Excise duty was blocking the growth. "Bringing parity in excise duty, proper infrastructure and improving facilities for foreign companies would go long way in building market in India", he added.

Speaking on the sidelines of the launch of the Seventh edition of Mercedes Trophy in India here, he said in China the car market was to the tune of Four Million while in India it was only 1.2 Million.

Market for luxury cars in China was 7.5 per cent while it is about 4.5 per cent in India. "Since there is increase in flow of foreign investments in to India the demand for Luxury cars is increasing but what is needed is government support by removing discrimination in excise duty, build up proper infrastructure and provide other facilities", he added.

"Even Society of Indian Automotive Manufacturers is also against discrimination in Excise duty for small and big cars", he added.

Stating that the company had registered a record growth of 11 per cent in 2006 against 5.5 per cent previous year, he said that this was the highest sales since last 10 years of establishment in India.

Referring to the new plant proposed in Pune, he said that already 100 acres of land had been acquired production might commence by 2008. However, he declined to specify the quantum of investment.

UNI