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What Merc does, Beamer can do too. German luxury carmaker BMW has managed a favourable duty structure for its cars which may make its models in India cost competitive.The car makers imports have been classified as completely knocked down (CKD)kits by Advance Ruling Authority(ARA),customs,central exercise and service tax. There is a big duty differential between CKD and SKD imports. While CKD attracts 15% duty, SKD attracts 60% duty and CBUs attract a total effective duty of 120%.Dailmer Chrysler India said, " The defination difference between CKD and SKD is not clear.We are doing CKD assembly of the -class for instance."Auto analysts say this could trigger off some competitive pricing from BMW which has announced a Rs 100 crore investment in an assembly line in Chennai which will roll out three 3 and 5 series. But BMW officials denied the ruling will give them some price muscle in the high-end market place."To our information, CKD car kits and parts for assembly in India have the same rate which is non-negotiable. Thus,BMW group is not going to have a cost advantage compared to other automakers, in this respect,"said LinusSchmekel,BMW group,corporate affairs,business and finance communications.
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| Posted : 12/2/2005 |
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