MUMBAI – India’s compact-car sales over the last two years have seen a dizzying 26.7% growth spurt, but in the current fiscal quarter that has slowed to 14.5%. Nevertheless, global auto majors are driving ahead with a variety of India-specific car and utility-vehicle projects, attracted by the long-term market potential and the country’s demanding market. There is ample reason to produce cars in India. Not only are manufacturing costs less, but there is a lower tax bracket for small ...

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