Indian Industries are now Competetive

Supporting a reduction in high tariffs on cars imported from the United Kingdom (UK) and European Union, Maruti Suzuki Chairman R C Bhargava is of the view that the Indian auto industry is as competitive as a broad and there is no reason why high tariffs are required to protect the domestic industry.

Bhargava said, “My views may not be shared by the industry, but we are as competitive as the UK and EU in cars.”

Bhargava pointed out the fact that companies like Maruti Suzuki were exporting 700,000 cars a year was a testament to the fact that India was globally competitive.

He said Suzuki in Japan, for instance exports small cars through Maruti Suzuki, to Africa and West Asia because it was cost- competitive to do so.

Toyota is making small cars in India through Maruti even though Daihatsu in Japan can also produce them. This is because in India it is cheaper to produce. Similarly, the production of the five-door Jimny of Suzuki has shifted to India and it has become a base for export of the model across the world.

The chairman of Maruti Suzuki conceded the point that there was a time when India was not competitive because production valumes were low.

But now India has become the third-largest automobile market in the world and companies have got scale with reduced production costs, despite still having some disabilities.

Not only that, it has the support of a vibrant auto component industry which is exporting all across the world and is cost-competitive again.

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