“The recent development following earthquake and tsunami in Japan are unlikely to have any impact on Mahindra & Mahindra. However, we need to assess what impact it would have on the recently acquired Korean company SsangYong Motor Company,” Dr Pawan Goenka, President of Automotive and Farm Equipment Sectors, Mahindra & Mahindra, said.
Answering queries after the foundation-laying ceremony here for their tractor plant in Andhra Pradesh, Dr Goenka said hardly any spares are procured from Japan.
Referring to the complete knock-down unit issue with regard to automotives and the Finance Minister, Mr Paranab Mukherjee's proposals, Dr Goenka said, “As a representative of the industry body, we are quite unhappy about the issue as this could lead to price hike for automotive companies, which would have to be passed on to the customer eventually.”
“There is some clarity after recent clarification about the issue about bringing down the duty structure. But as an industry, we would prefer a lower duty, not this high structure,” he said.
Dr Goenka said ancillary units will come up in the proposed auto-park adjacent to the tractor unit in AP in Zaheerabad.