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Stable govt policies imperative to drive sales, says Volkswagen India

Updated : September 06, 2019 07:25 PM IST

Volkswagen India has raised concerns about the government's frequent policy changes and lack of stability in the Indian automobile space.

Automobile manufacturing is not a cheap business and a lot of money is invested to provide value to customers, said Volkswagen India Director Steffen Knapp. Stability in policy decisions is necessary for the sector's growth.

When asked whether he was expecting GST rate cuts and other relief measures, he said it would be good, but it would have been better if the measures were announced when the finance minister was proposing other steps because it would have then given a clear message to the public.

Uncertainty does not help customers and their decision making, he said.

The new models of Volkswagen are not BS-VI compliant because there is no BS-VI fuel available now. Since a lot of competitors are hiking prices, the company does not want to increase prices. It has decided to manufacture BS-IV vehicles till the end of this year and then in Q1, would switch over to BS-VI.

 
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