Hi, Henry
I spoke to Dr. Patel about the subject. It was quite a tough negotiation. In the end, he said they’re wiling to make us eligible for preferential tax treatment with reservations.
If we are to be given a two-year grace period while still being given the preferential treatment, the proportion of electric vehicles we produce at the facility will have to be 50% by the end of the second year instead of 40%.
To be honest, 40% was already an ambitious target for us…Do you think 50% is achievable?
Regards
Kana
Hi Kana
Thank you for negotiating with Dr. Patel. I can picture the scene.
Correct me if I’m wrong, but to me, it seems like as long as we hit the 50% mark by the end of the second year, we can start the first year with much lower volume and still receive the tax break, right?
I think this might be just what we need. This is our first time building EVs on a large scale; this grace period would give us time to get used to the operation and pursue quality over quantity.
This does also mean a large increase in the number of batteries Asakura will have to supply two years from now. Are they OK with this?
Regards
Henry