Calcutta, Sept. 25: High taxes and a poor infrastructure have an adverse impact on the domestic automobile industry, said Tata Motors executive director Ravi Kant.
He was addressing a seminar on “Manufacturing excellence and outsourcing” organised by the Confederation of Indian Industry (CII). High taxes have a cascading effect on the growth of the automobile industry, he said.
Kant urged the government to rationalise the taxes to promote the industry, which contributes around 6-7 per cent to the economy. If the taxes are rationalised, there will be a phenomenal growth in this industry, he added.
He said the road infrastructure was still in a nascent stage and needed proper attention.
Kant called upon the domestic automobile companies to improve productivity and reduce cost to beat the competition.