Mercedes Benz India mulls change in production strategy for tax advantage |
Written by Subash | |
Friday, 18 March 2011 | |
Hyderabad: In order to retain tax levels following the finance ministry's new definition of CBU, Mercedes Benz may change it's production strategy in the country and begin local assembly of engines and gearboxes. Peter Honegg, Managing Director and CEO of Mercedes-Benz India said that the new definition could result in almost doubling the prices. "At the end of the day, we will have to change our production strategy. We have to bring in engines, gearbox and assemble here," he said. According to the finance ministry's new definition, all vehicles with imported pre-assembled parts like engines, gear boxes, transmissions or chassis shall be excluded from the list of completely knocked down (CKD) units. So far such vehicles attracted a custom duty of 10 percent. |