Automobile focus-product sop to cover more vehicles

NEW DELHI: In a bid to boost automobile export, the government has extended incentives to the sector by adding two-wheelers and cars of certain specifications under the focus-products category. Various items of high export intensity but low penetration in some countries enjoy benefit of import duty credit equivalent to 1.25% of freight-on-board value of exports under the market-linked focus products category.

The DGFT trade has said passenger cars with engine capacities up to 1,500 cc have been placed under the market-linked focus products category for exports to countries including Russia, the Philippines, Singapore, Pakistan, Saudi Arabia, Turkey and the UAE.

It also said two-wheelers, including mopeds, not exceeding engine displacement of 500 cc have also been extended the export benefit for shipments to Indonesia, Nigeria, Kenya, Tanzania, Singapore, Mexico, South Africa and Egypt.