Saturday, 25 February 2012

Secret Revealed - Why did Ford and Peugeot selected Gujarat(Sanand) and not other States ?

This thought must have crossed across your mind many a times, either you would have ignored it or you would have thought over it and have got different replies. Well, even we had came across this question several times, but the only reply our mind could give to us, may be the ease of port location in Gujarat would have attracted the car makers to set up a base for domestic as well as Export base.

Congress president Arjun Modhvadia in the assembly today asked Saurabh Patel about the same to which he replied and the things were crystal clear now. Below appended are some reasons due to which Ford and Peugeot made such a big but quick decision to set up their manufacturing base in Gujarat.

  • Exemption from paying stamp duty
  • Exemption from paying registration charges
  • Refund of the Value Added Tax (VAT) that the cos. would be paying for the next 15 years.
The big cost savings which will impact these Global auto makers cut down their overall cost and will make them more competitive than the already present auto makers like Maruti Suzuki and Tata Motors was more than enough to attract them. 

Now, following this discussion in Assembly today, we ask you for the feedback, if the Car makers in India exempt the registration charges and other taxes that the State government levy while you purchase the car along with Exempted Insurance charges, which the companies already do it attract you to buy a particular car from the auto maker than the other manufacturers ? - Big Question !!!


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