Luxury automaker Audi has asked for a separate quality control regime for the premium segment which is subject to a higher tax regime than the mass market manufacturers.
Audi India head Balbir Singh Dhillon told The Telegraph, “As we are subject to the highest customs duty and GST rate, we should also have a quality control regulation regime separate from the mass market.”
Dhillon was referring to the recently notified quality control order for automobile wheel rims, making it mandatory for all wheel rims of vehicles, either imported or domestically manufactured for use in the country, to be certified by the Bureau of Indian Standards. The certification will be effective 12 months from the date of notification in the official gazette. There will also be quality control orders for glass, alloy wheels, tyres.
The quality control order exempts low-volume players, following suggestions made by the automobile industry to the government. The industry, however, says that the exemptions are not enough.
“It takes time to implement such regulatory orders. We face a lot of problems. We have to first shut down production and then meet the regulations. Hence, we request for a stable policy regime and a clear road map for us to operate without a hitch,” Dhillon said.