Daewoo set to jam roads with four new car models

MUMBAI, April 30: Daewoo Motors India Limited (DMIL) is planning to produce one million cars in India in ten years with four new models inc...

MUMBAI, April 30: Daewoo Motors India Limited (DMIL) is planning to produce one million cars in India in ten years with four new models including a small car rolling out in the next two years alone. The project for the mini car has already reached an advance stage and about 100,000 small cars would be produced in India. DMIL Chairman S H Park said here that the small car is to be introduced to the world market by January 1998.

The company has also announced the launch of an 18-month test drive scheme of its Ceilo cars to registered car owners as well as corporates across India. An additional Rs 1,500 crore was being invested at the Rs 2000 crore Surajpur plant to enable the company to introduce a product in every segment of Indian passenger car market, Park told The Indian Express today. “Our company would produce one million cars within 10 years, half of which would be exported back to Daewoo’s global demands. The work has already started in this direction. Our plan is to produce within five years the latest cars and also look at the utility and the light commercial vehicle segment,” said the new chairman of the Korean auto giant.

He added that trial production for the manufacture of engines and transaxles had commenced at its Surajpur plant. It would have an installed capacity of 350,000 units each, half of the total production to be committed for the export market. He said with the South Korean automobile giant, Daewoo Motors, acquiring a 92 % stake through rights issue, the name of the company has been changed from DCM Daweoo Motors Limited to DMIL. The production, which is presently around 25,000 vehicles per annum against a capacity of 72,000 vehicles, is to be increased by another 5,000 vehicles following a pick-up in sales since February this year. The company has already got around 25,000 cars on the Indian roads and the monthly sales have picked up after May following the introduction of some financing facility. Monthly sales increased from 737 cars in February 1997 to 1613 cars in March 1997.

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Park said under the Test Drive Scheme 200 which is introduced in Indian market after its success in South Korea and United Kingdom market, insured Ceilo cars would be offered for all activities, both business and pleasure. Park said the scheme would be open for participation to all registered car owners as well as corporates . The entry form would be available from tomorrow, he added.

Draws would be held in June, and by July insured cars would be available to select customers. After 18-months, the participants would be offered the car at prevailing prices less 30 % depreciation or return the car to the company.