AP government officials say MLR Motors has finalised technology from Wuling for the micro-commercial vehicle and the Fiat Uno engine for the small car.
HYDERABAD: Is former Hyundai India president BVR Subbu banking on the Chinese and the Italians to bring in technology that will help him spearhead “disruption and discontinuity” in the Indian auto market?
If Andhra Pradesh government officials are to be believed, that is so. MLR Motors, the company that Subbu has set up along with M Lokeshwara Rao of Lokesh Machines to make micro-commercial vehicles and a small car, has finalised technology from Wuling for the micro-commercial vehicle and the Fiat Uno engine for the small car, they say.
SAIC-GM-Wuling Automobile Co. Ltd. (SAIC-GM-Wuling), is a three-way joint venture between GM Shanghai, Shanghai Automotive Industry Corp. (SAIC), and Liuzhous Wuling Automotive Co. Ltd.. It is a leading mini-vehicle maker and its Chevrolet Spark mini-car is particularly famous.
However, according to other sources close to the project, the company is also in talks with other players, mostly European, for technology for the two vehicles.
When contacted, Subbu refused to confirm the technology partners except for saying that he would announce the names some time in April when the project
ground-breaking is due.
“Competitive pricing deriving from optimal technology will be the differentiators that will change the Indian auto sector”, Subbu had said some time back when talking about the project.
The state government cleared the Rs 1,600 crore project on Friday, announcing the allotment of 225 acres in Medak district outside Hyderabad apart from an additional 250 acres for an auto component special economic zone to be set up by Lokesh Machines for supplies to MLR Motors.
The project will have an initial capacity for 60,000 cars and 48,000 micro-commercial vehicles. Subbu will hold a 20% stake in it while Rao will have 31% stake, with the remaining 49% to be raised from private equity players.
MLR Motors, which already makes a three-wheeler autos under the brand name Teja, is looking to roll out a micro-commercial vehicle later this year to compete with the Tata Ace and the Bolero Pikup. Likewise it has also announced plans to roll out two diesel car models in the price range of Rs 3-3.5 lakh by late 2008.
The prototype design for the micro-commercial vehicle was at an advanced stage and would be ready by July, Subbu said.
Auto sales will fetch revenues of close to Rs 300 crore for the company by the year 2009, he said. The small diesel car will follow the minivan in two versions of 850-900 cc and 1,500 cc in early 2009. In phase II the company will roll out petrol and CNG versions of the vehicle.
The plant, coming up a Medchel in Medak district, is being designed by famous Chennai-based design firm CR Narayana Rao Architecture and Engineers, it is understood. The construction could be executed either by L&T or Shapoorji Pallonji Associates, sources said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}