The Indian government is planning to bring automobiles in the gambit of a market-focus product scheme by providing export incentives in the automobile sector. The proposal for such a move has been forwarded to the Union minister for trade and commerce. Car manufacturers have already sought incentives for exports from the Indian government to withstand blows from the appreciating rupee.

The Union Minister for Trade and Commerce Mr. Kamal Nath said that the automobile sector will be brought under the focus market-focus product scheme which will be implemented in the Foreign Trade Policy for the year 2008-09. The minister has constituted a task force to tackle the issue of setback by the continuously appreciating rupee.

The joint task force consists of representatives from the auto industry and officials from the state and central governments. The Society of Indian Automobile Manufacturers (SIAM) has sought membership in the joint task force which will become functional in the coming month. The government has added names of 10 countries under the focus market-focus product scheme. Columbia, Brazil and Mexico are being considered as markets of significance.

Recently, SIAM had brought to notice of the government that car manufacturers, who were not part of the focus market-focus product scheme were facing an uphill task in developing new markets and were incurring huge loses in the process. The slow down in the domestic automobile market has further affected car manufacturers.