Ideal Motors with the equity participation of Mahindra & Mahindra, India will start on the Mahindra ‘people’s car’ assembly plant in Sri Lanka.
The initial investment is estimated to be around US$ 15 to 20 million and the first phase of the project would offer employment for around 250 to 300 youth,” said Ideal Group Founder and Executive Chairman Nalin Welgama.
“Ideal Motors will initially manufacture the Mahindra KUV 100 sports utility vehicle then move on to other segment of vehicles. The assembly plant would also include a test and crash drive facility, R&D centre and staff quarters as well.”
He said that this venture will also attract Indian component manufacturers to Sri Lanka which would help them to increase local value addition.
“The second phase shall be for our local companies to access the lucrative Indian auto components market taking advantage of the FTA we have with India.”
| Proposed Mahindra KUV 100 sports utility |
“We have been patiently waiting for the most opportune moment to enter the vehicle assembly arena. I feel the criteria have now been fulfilled.”
He said that one of the most important factors for this project which is trained staff can be found from their Ideal Technical Training Centre at Ratmalana which has now received the National Vocational Qualification (NVQ) status from the Vocational Training Authority (VTA) of Sri Lanka.
He said in addition they also have unmatched number of Regional Repair Centres (RRC) and workshops around the country which is a clear advantage.
“We need technology from our principals who are fully committed to do this.”
He also said that the government should establish a clear policy for the importation of vehicles and the emission standards.
“Our SME sector requires mobility and if we are to empower them to uplift their economic standards, we must produce economical local cars and this is the reason we decided to launch the people’s car for a affordable price tag,” he said.
He said that they will also look at assembling an eclectic car in the future in Sri Lanka.
| The Mahindra factory in India |
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