The Hindu Business Line : International Cars to start making multi-utility vehicles from May

INTERNATIONAL Cars & Motors Ltd, a Sonalika group company, will kickstart production of its multi-utility vehicles from May while it has put off the manufacture of passenger cars.

"The utility vehicle project is progressing well. We should start production by May," the company's Managing Director, Mr D. K. Mittal, told Business Line.

He said though the launch of passenger cars has been put off for sometime, the project is part of the company's long-term plan.

International Cars & Motors has a technical tie-up with the UK-based MG Rover for manufacturing the utility vehicles. The entire design of the vehicle will be provided by MG Rover. Mr Mittal said these utility vehicles will have two seating configurations, a seven-seater and a 10-seater with two-litre engine.

The plant in Himachal Pradesh has a 24,000-unit-a-year capacity. But initially only about 5,000 units will be produced, some of which will be exported to South-East Asian countries. The Rs 1,000-crore Sonalika group has also tied up with Powertrain Ltd, part of the Rover group, to manufacture gearbox and engine units for the models which are fitted with common rail diesel injection systems.

The current capacity of the plant is around 50,000 units a year. "Tests are currently going on. We should start exporting them by September this year," Mr Mittal said. The group is investing about Rs 200 crore in these projects.

The Powertrain Managing Director, Mr Fraser Welford-Winton, had earlier said that the company would source engine components worth £15 million from this venture in 2006.

The Sonalika group is also one of the supply chain partners of Powertrain's forward common rail diesel powertrain programmes.

The long-term collaboration provides for Sonalika to manufacture a range of powertrain components.

The Sonalika group also manufactures tractors through its subsidiary, International Tractors' Ltd in which Renault Agriculture holds a 20-per-cent stake.

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