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The government has imposed a consumption tax on auto companies to fight inflation by suppressing demand and the import duties are amongst the highest in the region. In order to offset these effects some domestic auto companies have implemented a price cut which does affect profitability.
Competition: Toyota is one of the major players in here with almost 42.6% market share and the other major players here include Honda Motors, KIA Motors and GM Daewoo. Despite the presence of the major players, the market presents a good scope for entry given the rising per capita income and also the fact that majority of cars here are imported as CBUs...
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