NEW DELHI: After 18 months of sudden rule changes that left many carmakers scrambling, some of the industry’s largest players are calling on the government to set clear, stable policies — or face the risk of delays to major investment.

India is one of the world’s fastest-growing car markets, and getting more companies to manufacture in India — both for its own market and for export — is critical for the Prime Minister Narendra Modi’s government, which needs to create millions of new jobs each year as the workforce expands.

Executives at automakers like Volks­wagen, Hyundai Motor Co and Tata Motors say that to invest more and better, they need more stable regulation on tax, emissions allowances and electric vehicles.

The latest setback came last week, when India’s cabinet approved a move to increase the maximum levy on luxury cars and sport utility vehicles (SUVs) to as much as 25 per cent — less than two months after deciding on a lower rate of 15pc as part of the new nationwide goods and services tax.

Published in Dawn, September 10th, 2017