Automotive major Mahindra & Mahindra today expressed the hope that the Government will reconsider its move to levy higher excise duty on sports utility vehicles.
Pawan Goenka, President of Automotive and Farm Equipment Division, M&M, expressed that the automotive sector has articulated their views to the Government and Finance Minister on the need to reconsider its move to levy higher duty on SUVs.
Speaking to newspersons after inauguration of the Zaheerabad tractor plant, he said that the company being a major player in the SUV market was keen that this move to have additional duty would be reconsidered. “We are not happy with the budget announcement,“ he said.
He added that seven suppliers have decided to set up plants in the park close to the tractor unit. This may mean a total investment of about Rs 150 crore in the 100 acre park.
The tractor market has de-grown by about 2 per cent this year but the market is likely to improve by next year, he felt.
"While the focus will be on expanding the domestic market, we will expect to further consolidate the export business," he said.
Referring to electric vehicles, he hoped that the government would consider duty reduction to boost the prospects of this segment where the company is set to launch a vehicle shortly. Unless this is done there won't be much volume growth, he felt.
On the AP Governments request to set up a small passenger mover unit in the State, he said they would study the proposal.
The new tractor plant will make both Mahindra and Swaraj brands and focus on domestic market. For exports this plant is not ideally located as there is no port close by to support exports, he said.