Sri Lankan automobile history will be re written when Mahindra & Mahindra Ltd a part of the USD 17.8 billion Mahindra Group India and their partners in Sri Lanka Ideal Motors manufacture Sri Lanka’s first ‘Made in Sri Lanka car’.
Ideal Motors Chairman, Nalin Welgama told Daily News Business that the Mahindra Group top management met Minister of International Trade Malik Samarawickrama in New Delhi recently to discuss this project. “In addition we met the Finance Minister to brief him on the project.”
Welgama said they will initially invest around US$ 20 million for logistics and a further US$ 40 million for components. Investment would be raised through banks and it will be a BOI project. “We are looking for a 25 acre land on a long lease to set up this factory in the Western Province which will include a test and crash drive facility, R&D center, staff quarters and the factory.”
“We hope to commence operations this August and hope to roll out the first car by 2018 end. Our target is to manufacture 750 cars per month and hope to market it under Rs. 3 million.”
He said that they plan to manufacture the Mahindra KUV 100 sports utility vehicle (1200 CC Manual/Petrol Model) for both local and export use. “We are looking at regional exports and also play Africa.”
The entire paint work of the car too will done in Sri Lanka. In addition Sri Lankan made seats, tyres, battery, bumper, exhaust and rubber parts will be used for the project making the local value addition to go over 35% which enables them to have them claim the ‘origin Sri Lanka’ tag.
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Ideal Motors Chairman,Nalin Welgama
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He said that whenever Mahindra sets up overseas operations, Indian automobile component manufactures also follow them and this too will be repeated in Sri Lanka automatically creating a motor hub status in Sri Lanka. “So in a few years’ the local value addition will go over the 80% mark.”
Welgama said they already have a huge islandwide dealer and after sales network and this too will help to market their car. In anticipation of this project they have also increased intake for their Ideal Group Technical Training Centre. “We hope to provide over 400 direct employment.”
Welgama recalled that since Sri Lanka is one of the top three overseas markets from 90 countries for the Mahindra group, its chairman Anand Mahindra sponsored the IPL cricket tournament a few years ago since he wanted to give something back to Sri Lanka. “We have been keeping this robust marketing trend and recently the Chairman, Mahindra said he wanted to do more for Sri Lanka and then I requested for this plant, for which he readily agreed.”
He then instructed Dr. P. Goenka who was instrumental in launching KUV 100, now branded as the India’s people car to assist in this project.
Mahindra & Mahindra South Asia International Operations Vice President Sanjay Jadhav said they have many assembly and manufacture plants in Africa and are keen on a plant for Sri Lanka too.
“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.
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