Maruti, Nissan among few companies tense about outcome of Brexit
United Kingdom: Maruti Suzuki and Nissan are among
various auto makers, which export passenger cars to Britain as well as European
Union. The automobile manufacturing companies are getting tense due to the
anticipated outcome of the Brexit voting, despite of Tata owned Jaguar Land
Rover (JLR), pitched a vigilant note regarding the outcome.
Nissan,
an eminent car manufacturer in India, also export Indian made cars such as Nissan
Micra, and Nissan Sunny to Britain, wherein, the company officials are noticing
the developing sales trend very sharply. In addition to that, as Maruti just
initiated the export of its recently launched Baleno to Britain and various
other European nations, the company did not have a massive exposure to the
country.
All
the companies are considering the situation to be in doldrums and are trying to
study the outcome of Britain, moving out of European Union. Jaguar Land Rover,
which is driving a supreme part of overall revenues and profits for the parent
company, Tata Motors, stated in regard of the law, that it would remain
committed towards the customers in European Union. As per the spokesperson of
the company "Nothing will change for us, or the automotive industry,
Overnight". The official also added “For Jaguar Land Rover, today is just
business as usual. We are a British business with a strong manufacturing base
in this country, we call Britain home and we remain committed to all our
manufacturing sites and investment decisions. Europe is a key strategic market
for our business, comprising 20% of global sales, and we remain absolutely
committed to our customers in the EU”.
"There
will be a significant negotiating period, and we look forward to understanding
more about that as details emerge. We look forward to working with the British
Government and the automotive sector to ensure that the UK's automotive
industry remains as competitive as ever, and that negotiations between the UK
Government and the EU will continue to recognise the importance of car
manufacturing to the UK and European economies," as stated by the JLR
spokesperson.
According
to a recent report published by TechSci
Research, “United
Kingdom Tire Market Forecast and Opportunities, 2021’’, United Kingdom comprises of England,
Scotland, Wales and Northern Ireland, wherein, England is the largest country
in terms of population and land area. England also accounts for the highest
number of vehicles in the United Kingdom and contributes more than four-fifth
of the total tire demand in the region. Moreover, several leading global
automotive OEMs like Nissan, Land Rover, Toyota, Honda, DAF, etc., operate in
the United Kingdom, which consequently, creates huge demand for tires in the
country.
TechSci
Research believes that with Brexit in power, the car manufacturers in India,
exporting vehicle to European Union and through European Union to United Kingdom,
would now have to export the vehicles in both the regions, separately. An additional
import duty by United Kingdom would be applicable on vehicles, the cost of
which would likely fall in the hand of end consumers. Consequently, leading to
a shrink in the sale of vehicles in UK in coming years, thus, impacting the
overall market of tires in the country.