Maruti’s green signal for Thai trade pact
The prolific Indian car manufacturer Maruti Suzuki has finalised the green car launch on the Indian roads. The proposal is the outcome of the Thai trade pact which facilitates the reduction of taxes. Thus, the car will dare a challenge in the car industry. The car will be the replica of the one designed by Suzuki Motor for the Thailand roads to promote eco-friendly environment.
The Thai government had initiated eco-car campaign and Suzuki Motor Company could instantly respond to it with its 1300cc Euro IV engines and fuel efficiency of 20km/lit under 120 gms of CO2 emission/km. The returns for these range of cars are relaxation in excise and taxes. The apex company had a plan to manufacture 1.38 lakh eco cars (Cervo and et.al) annually in Thailand and the amount allocated for this plan is $280 million. However, Suzuki was no exception to undergo the global tirade and the soft pedalling was on way.
Thailand government had planned to export such cars under which Suzuki Motor Co. had staked its claim with 10-15% for local market with the remaining for exports to Australia and ASEAN countries. Nevertheless, Suzuki cannot directly export full-built cars to India and Maruti has devised the plan to assemble the parts, which undergo tax reduction, in India. Suzuki Motor has been nurturing its cub with almost a dozen models of new cars in the last two years to enhance the product portfolio and market share of 50% in the Indian car industry.