Suzuki has approached the Indian government demanding special treatment for its proposed joint venture MUL car manufacturing with Nissan, describing it as the biggest export project in India, planned to export over 340,000 cars valued at over $3bn annually, a company official has told the country’s Economic Times. The venture plans to build two new plants, adding to an existing 600,000-capacity plant.
Investment costs include upgrading transport infrastructure from plants to port, development of exports ports including new port construction and portside vehicle storage area.
Tax incentives sought by Suzuki, majority owner of Maruti Udyog, India’s biggest car manufacturer, include corporate tax exemption for 10 years and duty exemption on imported parts materials and equipment, VAT and stamp duty concessions, financial support for the installation of utilities, and the assurance of stable industrial water and LNG supplies.
Nissan and Suzuki agreed in June this year to broaden the scope of their collaboration to include the joint use of their manufacturing facilities in emerging markets. In India. Suzuki will build a new small car in India to supply to Nissan, starting from end 2008.
(Economic Times of India, 13 September)
Wednesday, September 13, 2006
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