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Policies slow VW entry to India

Published on .

Uncertainty over India's auto components import policy forced Volkswagen to delay plans to introduce a passenger car here. Volkswagen was negotiating with truck/tractor manufacturer Dicher, New Delhi, to build a midsize car, but commerce ministry guidelines on imports forced the carmaker to halt talks with Dicher. The new guidelines, intended to save Indian auto joint ventures from spending foreign exchange on non-Indian components, affect Mercedes-Benz, Peugeot and Daewoo, among other carmakers.

Copyright July 1995 Crain Communications Inc.

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