With negotiations on Free Trade Agreements between India and the European Union at an advanced stage, the country’s automotive sector is keenly watching their outcome and possible impact on the sector.

Honda Cars and Ford India have divergent views on the impact of the FTA on the country’s automobile industry.

The top officials of Honda and Ford were in the city for the launch of Amaze sedan and showcase Ford Ecosport, respectively.

Both companies are investing heavily for their new manufacturing units in India. Honda has committed another Rs 2,300 crore for a new plant to hike capacity from 1.2 lakh to 2.4 lakh a year and Ford is developing a $1-billion greenfield plant at Sanand in Gujarat. Joginder Singh, President and Managing Director, Ford India, told Business Line , “I hold a distinctively different view on the impact on FTA on the automotive sector from what even the SIAM believes. I feel that it will benefit the end customer.”

“My views are different from some other automotive companies have to say about FTA,” he said.

Jnaneswar Sen, Senior Vice-President of Honda Cars India, said: “The FTA will impact the prospect of making India a hub for small cars. In fact, several companies including Honda are investing in India based on the Government thinking of making it a hub for small cars.”

“Now, if the FTA goes through, myself, SIAM and others in the automotive sector believe that this will impact the prospects of local manufacturing. The crisis-ridden automakers in Europe will line up their models in India which could hurt local manufacturing,” Sen said.

rishikumar.vundi@thehindu.co.in

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