And Hyundai has i10, i20 and Aura. At the time of writing, imported i10 is available for sale in small numbers, and can compete with Cultus and Picanto.
We need variety and competition to make things right for the customers.
If we had variety, even something like the MG 5, or Stonic at a good price, I believe Atlas Honda would not have dared to launch 6 year old outdated City, and then tease it for a whole year. We need more.
I think there should be audits on these provided benefits, and if not transferred to customers, or merely used to make money, they should be removed. And before that, any company choosing to take advantage of the tax relief should be given clear parameters they would be judged against every year, e.g. if they decide to develop/bring a car of a segment, its price range, features etc. should be specified. If they don't agree, they should be told to enter the market without the benefits.
Taxes are there to serve the people, and any recipient of tax benefits should not be allowed to get away, their every step should be audited. Its our money afterall.