The Hindu Business Line : Skoda plans to set up R&D units

CAR maker Skoda Auto India Pvt Ltd (SAIPL) in a statement, said that it is planning to set up Research and Development (R&D) units in the country, inspired by the 150 per cent deduction on in-house R&D announced in the Union Budget.

"The deduction will benefit companies who have plans to increase R&D budgets and activities in India and would enable more foreign players to enter the country's market,'' a SAIPL release said here on Tuesday , quoting the Managing Director, Mr Imran Hassen.

The entry of foreign players would result in an expansion of the automobile industry, apart from offering a wider choice of products and services to the customer, it said. Hailing the deduction, he said, "It is a step in the right direction." Mr Hassen, however, did not specify the quantum of investment in R&D units.

On plans to increase the company's product prices, he said the cost impact of the Budget is being analysed and added that the company was "still considering whether to increase the prices."

SAIPL also said that the automobile industry would be indirectly benefited with the 15 per cent additional depreciation given on plant and machinery for a capacity growth of 10 per cent or more.

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