Situationer: Carmakers ignore middle-class buyers

Dawn | May 4, 2021 at 8:33 AM
  • As the Auto Policy 2016-21 nears its end on June 30, 2021, consumers have not witnessed any rolling out of small 800cc or below cars by new international entrants who instead raced towards introducing sports utility vehicles (SUVs) and high engine power models under duty concessions.
  • The key objective of the 2016-21 auto policy was to bring competition that would result in reduction of car prices, especially in the entry level segment so that the middle-class population of the country would be able to purchase smaller cars.
  • In the new Auto Policy 2021-26, there are indications that duties on completely built-up (CBU) and completely knocked-down (CKD) will be reduced across all segments of passenger cars and SUVs.