German luxury carmaker Mercedes-Benz has urged the government of India to reduce the taxes levied on automobiles. This plea comes in the wake of the company planning to expand and invest more in India as confirmed by a top executive.
"We have one of the largest manufacturing facilities in the luxury car business. As we expand our operations in India, the sale of our locally assembled cars is on a constant rise in the domestic market. It has grown to around 70% of our total of 10,201 cars sold in 2014 and as we launch new products, it will swell further.
"There is a need to rationalise the current tax regime as there are multiple taxes, especially in states, which makes it difficult to conduct pan-India business," Eberhard Kern, managing director & CEO of Mercedes-Benz India, told a publication.
Currently, the taxes levied on locally made cars range between 58-75 per cent and imports have to bear 170 per cent taxes. Mercedes also claims automobiles taxes in India are one of the highest globally.
Mercedes’ sales numbers are on the rise and with 15 new product launches in the pipeline, it might send the numbers even higher. Any reduction in taxes is good and it would be great if all manufacturers fight for this cause. The reduction in taxes if passed on to the customer will make cars cheaper. But, the government should reduce taxes and urge manufacturers to make the cars more safer with standard airbags and ABS for even cars under Rs 5 lakh.