Last updated : February 10, 2001
agencyfaqs! News Bureau
Ford Motor India on Friday announced its entry into the second-hand car market. The company plans to sell reconditioned cars of all make with the 'Ford Assured' guarantee.
At the press conference in Delhi on Friday, a company executive also said imports of second-hand cars into India would "severely" harm the domestic automobile industry. Ford India vice-president (marketing, sales and service) John Fink said, "It will shrink the new car market in India."
The domestic car market, he said, is still at a growth phase. "All manufacturers have invested big amounts of money here. Anything that may bring this down will be harmful for the country," he said. He added that Ford will not facilitate import of used cars. "The new division is only for the Indian market," he said. The Ford executive cited the example of the Australian market where the easy import of second-hand cars completely destroyed the domestic auto industry.
To put things into perspective, according to WTO stipulations, all quantitative restrictions will be lifted after April 2001. This will open the Indian market to imports of second-hand cars. However, the government is currently finalising an auto policy which would include restrictions permissible under the WTO to curtail the import of such cars into the country. Areas where restrictions could be imposed include emission norms, left hand drive and vehicle condition.
© 2001 agencyfaqs!First Published : February 10, 2001