Then I ask him about another emission related issue - although entirely different from the earlier one - about the jump that the Indian Government is planning from Bharat Stage (BS) IV to Bharat Stage (BS) VI by 2020 by
skipping one stage completely. He says that as a Company, Volkswagen is well-prepared for this change because it has the cars. "Some people also ask us as to why are we downsizing our engines to BS IV. The reason is simple: because the fuel is not available. So the availability of BS VI fuel will also be a big challenge. We will need BS VI fuel at least one year before we bring in the cars but the problem with the oil companies is that they cannot bring the fuel so quickly. Well, all manufacturers are committed to the shift to BS VI and also to the timeline but under certain conditions.
"Of course, the discussion related to taxation in this context is still open therefore it will not be easy. We need a correct and reliable roadmap from the government in this regard that will assure us that we can invest because we need security to make investments," he says, adding that he is overall satisfied with the way the government is making efforts to bring reforms. "There is a lot of movement and the biggest step is the GST. It is a step forward as now India is a common market. There will be a lot of trouble in the beginning for sure but this is a big step ahead in the right direction. The central Government is trying a lot to change the total circumstances for the industry in a positive way. They recognise that we need more growth. A GDP of 7 percent is nice but when you have to overcome the situation of poverty then you need more or less about 10 percent to 12 percent. And it is possible. Thankfully, we have also had a good monsoon this year so it will also help," he says.
Dr. Lauermann is also happy with the way the Maharashtra Government and the CM are actively taking steps to bring ease of doing business in the region. "But there is a lot of work to do. It's a long way but they are on the right way," he adds.
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