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Automotive Industry in our country is screwed partially due to Government Babus illogical tax brackets and General struggle by Companies to handle the taxation issue.
With regarding to Illogical taxation, this is how it is, leave the GST. This 4m, less than 4m rule is creating an issue for long time. Example someone like VW, Mahindra had this issue, Example VW had great success with Polo but due to Polo growing every gen it got breached the 4m and taxation screwed the price. Now VW cannot sell the product with same competitive price. Remember VW in India is basically an Indian company and they need to pay Jizya to German HQ. Same with Mahindra the current 3XO is actually an Creta rival but Mahindra decided to chop the boot which is resulted in some shitty back end. Otherwise the 3XO design with original dimension is cool looking car. TATA Curvv was looking incomplete as they wanted to make sure it is 4.3m.
Brezza is taxed higher since it is using an 1500CC engine. But it is an cheaper car if taxation is simpler. Lot of hatchbacks in our country needs an bumper cut due to 4m rule. These over regulations killed the small car segment now.
On the plus side, this bring some innovation like small turbos like 1.0L Boosterjet from MSIL, 1.0L Turbo from Nissan/Renualt, 1.2L Puretech Turbo from Citroen, 1.2L Hyperion from TATA, 1.2L MStallion from Mahindra.
They also don't give an tax cut for Hybrid since mahindra, MSIL gamed them previously by selling Micro Hybrid as Hybrid.
Ideally they should cut down taxation on Length, Engine capacity and moves to taxation based on Emission level. In this way ICE will be taxed more, Hybrid less and EV will be lowest. Also can bring Taxation on Indigenous content percentage on Manufacturer. If they bring supply chain here, give them tax cut. So we can have full supply chain in India.
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