So far in India a small car meant ,cars having a length of 3.8m or less and 1.2 litre engine specification for petrol and 1.5 litre for diesel.Such cars enjoyed a cut in excise duties from 24 to 16 per cent.But all this is soon to some amount of lobbying has taken place mostly by foreign car manufacturers[Honda,Hyundai and genral motors are the biggest beneficiaries] ensuring that the govenrment has agreed to increase the length allowed to 4m.
What has not been sorted out so far is the demand to remove restrictions on the engine specificatio/size ,things are still in discussion with regards to that.Makes sense because what does engine specification really matter and mostly people in India would not go for very powerful engines because of the Fuel efficiency factor.
The decision to accept 4 metres is a victory of sorts for the foreign car manufacturers but what would add icing to the cake is if the FM accedes to their second demand and lifts the clause of engine specifications.
Buying a car read this
Saturday, September 15, 2007
Indian Government to redefine small car definition
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