Investigators Uncover Multi-Million Pound Tax Scam in India; European Exotics, Foreign Diplomats and Bollywood Actors Involved

In what sounds more like the plot of a The Fast and the Furious movie than real life, investigators at India’s Directorate of Revenue Intelligence office (a.k.a. India’s IRS) have uncovered a massive exotic car smuggling operation in the nation’s capital of New Dehli. It all has to do with India’s notorious 100% import tax on new luxury vehicles.

It began with one New Dehli luxury car dealer, Sumit Walia, importing brand new luxury cars on forged invoices. These invoices listed the cars as second-hand, which saved Walia – and his customers – some 40% on import tax. Some of the cars – which included Porsches, Bentleys and Aston Martins – were found to have been stolen from the streets of Britain, France, Singapore and Japan.

Read more »

Tata Nano Sales Rose by 1,136% in December

In an effort to boost sales of its US$2,900 Nano micro car, India's Tata extended the warranty and offered easier financing in December, while it also launched a new advertising campaign that included a TV spot.

It turns out that this was a smart move, as sales of the Nano spiked reaching 5,784 units, which represents a 1,136% increase over the 509 units the company shifted a month earlier. This is still below the 9,000 monthly sales record achieved in July, but it seems that the Nano is back with a vengeance for 2011.

The warranty has been extended to four years or 60,000 km (37,282 miles) and clients can opt for a US$2 monthly maintenance option, which, coupled with the opening of new sales points and the upcoming nationwide distribution plan, should keep the momentum going.

“Tata Motors is now focusing on the Nano because its reputation is riding on it”, said Umesh Karne, a Mumbai-based analyst with BRICS Securities Ltd., who has a “buy” rating on the stock. “Measures such as easy financing and the maintenance offer have reassured customers”.

Last but not least, the Indian maker also promised to retrofit all Nanos with revamped exhaust and electrical systems in order to prevent more cars bursting into flames.

By Csaba Daradics

Source: Bloomberg