Mahindra & Mahindra Ltd, a part of the USD 17.8 billion Mahindra Group based in India is keen to set an assembly plant in Sri Lanka.
Sanjay Jadhav, Vice President, Head of International Operations - (South Asia), Mahindra & Mahindra Ltd, speaking to Daily News Business in Colombo said that Sri Lanka is one of the top three overseas markets from 90 countries for them. “We have many assembly plants in Africa and other regions and since business is going well we are looking at an assembly facility in Sri Lanka soon.”
He said that they are firstly keen to assemble transport vehicles for business which is in high demand. In addition we are also looking at assembling the all new compact Mahindra SUV, the KUV100 which was launched in India last year. This was launched in India for INR 4.42 lakhs and is directed towards families as well and has an option to seat six people, with three people each at the front and rear seats.
“We want to offer a good quality car for a lesser price for Sri Lankans and the car is targeted at the first-time car buyers and youth,” Jadhav said.
He said that they are looking for a suitable place to put up their factory and they may even consider the North since they see lot of opportunities to provide employment for youth. “Our partner, Ideal Motors is one of Sri Lanka’s most established automobile companies and their sound knowledge of the local market coupled with professional expertise have ensured our success,”he said.
He said that though Indian and Chinese car imports to Sri Lanka have the same duty structure the changing tariffs by the Sri Lanka government is a big issue. “The motor vehicle tax structure keeps on changing and we need a long term policy to plan or operations more smoothly,”he said.
He also announced their entry into three new businesses in Sri Lanka with the debut of Truck & Bus, Construction Equipment and Powerol businesses.
The company will set up these three new businesses in partnership with Ideal Motors Ltd, its long standing partner of over 8 years.
Nalin Welgama, Chairman, Ideal Motors Ltd. said, “With our tough and rugged DNA, we believe that Mahindra vehicles and equipment have a strong value proposition which will make these the preferred option in their respective segments. It is an exciting opportunity for Ideal Motors as we diversify our product portfolio and assist the Mahindra Group in expanding its business footprint in the country.”
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