HMIL seeks deemed export status for car sales to NRIs

By Our Special Correspondent

CHENNAI, NOV. 29. Hyundai Motor India (HMIL) has moved New Delhi with a petition seeking to confer deemed export status on car sales in India to non-resident Indians (NRIs) against dollar payments and adjusting the same against its export obligation under Export Promotion Capital Goods (EPCG) scheme.

The company has close to $800 million export obligation under EPCG scheme, spread over eight years. Official sources in the company are convinced that their demand makes economic sense.

Non-resident Indians can now bring cars into the country with so much felicity. Nothing prevents an NRI from buying the car elsewhere abroad and bringing it into the country. ``It is a question of encouraging your economy,'' quipped Mr. B. V. R. Subbu, Marketing Director of the company. Conferring deemed export status on car sales in India to NRIs will have twin positive fallouts on the economy. For one, it will give a fillip to the domestic manufacture of cars. For another, it will ensure that NRIs don't divert their hard-earned dollars to other countries for buying cars.The HMIL plea comes even as many newcomers in the car sector are beginning to suggest informally an extended 15-year time frame for meeting export obligation under the EPCG scheme.

Rolls out 150,000th vehicle

HMIL scaled a new milestone on Wednesday when it rolled out 150,000th vehicle - an Accent, from its assembly line at Irungattukottai, 45 km from here. It notched up this feat in just over two years. ``This is a proud moment for us,'' Mr. Y. S. Kim, Managing Director, told a press conference. ``This achievement will further strengthen our resolve of achieving new benchmark in customer satisfaction,'' he added.

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