At the top of Siam, Jyoti Malhotra, Managing Director of Volvo because India, stressed the potential advantages that such an agreement could bring to European car manufacturers operating in the country.
Malhotra stressed that the proposed FTA could help resolve existing commercial obstacles and create new opportunities for the automotive industry.
“I would say that FTAs are welcome. Free trade is something that really helps both parties, that’s the prospect of having a free trade agreement,” he said, adding that small characters will finally decide the extent of the advantages.
One of the main challenges, he noted, is the limited scale of the luxury car market in India, which currently represents only about 1% of the global automotive industry. High import rights have restricted the ability to introduce a wider range of models.
“What FTA can do is that if there is a car that is available in (our) global portfolio, which I want to bring to India, I want to test it, or I believe, okay, there is at least a segment of customers who can have this car,” said Malhotra.
Beyond insurance access to luxury vehicles, Malhotra believes that the ALE could strengthen supply channels, support government thrust in India and help manufacturers evolve from India to other markets.
Volvo Cars, on the other hand, continues to focus on expanding its imprint on the Indian market and accelerating its electrification strategy.
Read also | Volvo Car India reduces ice prices up to 6.9 Lakh after rationalization of TPS
(Edited by: Shoma Bhattacharjee))
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