Auto policy fails to get SIAM backing

new delhi: predictably enough, the auto policy’s small car focus and automatic approval for 100 per cent foreign equity investment with any minimum investment criteria has not found favour with siam. the former because the apex body has always maintained that preferential excise is against the tenets of a free market. and the latter because it fears the increase of trading activity instead of assembly or manufacturing in india. “the recommendation of promoting passenger cars of length upto 3.8 meters through excise benefits is not in line with the free market concept and may lead to market distortion,� said a siam release. as for the open investment climate, the statement said: “siam has always been advocating encouragement of value addition within the country against mere trading activity. however, this aspect has not been fully addressed. the auto policy allows automatic approval upto 100% in the automotive sector and does not lay down any minimum investment criteria.� the preferential excise issue, when first discussed in siam, had driven a wedge between members producing b segment cars and those in the higher brackets.