Maruti and Nissan to manufacture small car in India

Maruti and Nissan have announced that they were negotiating a joint project to manufacture a compact pick-up van and a small car in India, reports Business Standard.

Japanese automobile majors Nissan and Suzuki have submitted a long wishlist, including a 10-year corporate tax holiday, duty-free imports, a VAT holiday and stamp duty exemption, for the Rs 25 billion plant they plan to jointly set up in India.

In addition to the tax write-offs, the companies have sought cheaper electricity, gas and water. They have said the price of power in India is among the highest in South East Asia. They also want a stable industrial water supply and the laying of a liquefied natural gas pipeline as soon as possible.

The other demands made to the central and state governments include an upgrade of transport infrastructure from their plant to ports, streamlined border inspection, abolition of traffic restrictions on heavy vehicles in cities and development of ports. They also sought support to improve the living conditions of expatriate Japanese employees.