The Hindu Business Line : Premier Auto plans to launch multipurpose diesel vehicle

Speaking to newspersons, Mr Atul Akolkar, Head (Sales and Marketing), said that the vehicle was being developed in technical collaboration with China Motor Company, ROC-Taiwan, an affiliate of Mitsubishi Motors.

The vehicle production would be carried out at the Chinchwad facility of the company and an investment of Rs 25 crore (from land sale) has been made to make it a modern facility.

The facility would roll out about 1,000 vehicles per month from April 2005, which is expected to increase to 1,500 per month by April 2006.

The machine tools division, which is housed in the Chinchwad complex, would continue with its own production.

Over the next three years, the company is expected to invest Rs 50-70 crore in the Chinchwad facility, Mr Akolkar said.

He added that the company shifted base from Mumbai to Pune because the Kurla (Mumbai) facility, which produced the famous Premier Padmini, was now in the hands of Fiat India and was being utilised for the manufacture of the Palio, Siena and the Weekend.

Giving details about the Sigma, Mr Akolkar said that it sports a two-litre diesel engine, roof-mounted air-conditioner for all-round cooling and a seven-seater arrangement.

The design has been taken from Mitsubishi Motors and Premier is planning to import body panels, he added.

The vehicle would be available in two models and four versions - the EX (the base model without air-conditioner and in solid and metallic colours) and the DX (air-conditioner, solid and metallic colours and additional features).

The EX price would be Rs 3.95 lakh (ex-showroom Pune) and the DX would cost Rs 4.35 lakh (ex-showroom Pune).

The price is an introductory offer and would be offered to the "die-hard customers of Premier and about 300 early birds''.

The vehicle gives an average of 19.99 km to a litre of diesel under test conditions, Mr Akolkar said.

The vehicle would be seen on the roads of Andhra Pradesh and Gujarat in the next two months and the launch would then move on to Tamil Nadu, Karnataka and Kerala.

According to Mr Akolkar, the company - which produced the last Premier Padmini in 2001 - had already begun a survey to find out the niche segment that could be tapped into.

The survey had zeroed in on the multi-purpose vehicle in diesel version as there was no other player in this segment.

The Sigma has undergone clinical trials and crossed more than one lakh km as test-drive.

Mr Akolkar said that having learnt bitter lessons from the past, the company is developing its network gradually; in Phase I it would tackle the Western and Southern markets (Gujarat, Maharashtra, Goa, Kerala, Karnataka, Tamil Nadu and Andhra Pradesh), with a network of 18 dealers.

Then it would move on to the Northern and Eastern markets and would have a total of 50 dealers across the country.

He added that the company would not have any bookings but "would opt for the touch and feel and test-drive' to promote sales.