Chennai, Feb 28: Planning to expand its operations in India, Japanese automobile company Nissan Motor Company Thursday said it will benefit from Finance Minister P.Chidambaram’s budget proposal to allow investment allowance of 15 percent.
Reacting to the proposal, Takayuki Ishida, managing director and CEO of Nissan Motor India, the Indian subsidiary of Nissan Motor Company, said: “We are very happy about the investment allowance of 15 percent for investments above Rs.100 crore as a tax incentive.
“We stand to benefit from this as we have plans to expand our operations in India,” he said.
Currently, Nissan gets its models made at the Franco-Japanese automotive joint venture Renault Nissan Automotive India Pvt. Ltd. (RNAIPL) near here.
The plant has a total capacity of 400,000 units on a three-shift basis and caters to the needs of both Nissan and Renault.
In an recent interaction with the media, Ishida said the issue of capacity expansion is under study at the group’s headquarters in Japan and the company was studying options of setting up the expansion plant in or outside Tamil Nadu.
On the proposed hike in excise duty on sports utility vehicles (SUV), Ishida Thursday said it will not have a drastic impact.
“It is most likely to distinguish the price barometer between sedans and SUVs even more clearly than ever before.”
According to him, the 2013-14 budget is a “budget in motion” as it continues to focus on growth in predominantly primary sectors like agriculture, infrastructure and education.