The Hindu Business Line : Swaraj Mazda to roll out medium, heavy commercial vehicles

Having signed a technical assistance agreement with Japanese automobile major Isuzu, SML is learnt to be finalising a range of products for the domestic market. The company's forte, at present, is in the five to nine-tonne category. The company has already commenced testing of a new product, a 16-tonne single-axle vehicle, which could also be its first new product using technology procured from Isuzu. According to sources, the company is keen to develop offerings for both the carrier and passenger segment.

Products in the passenger segment could include premium buses similar to the ones Volvo is selling in the domestic market. SML will also set up an in-house facility for making bus bodies.

"Isuzu's plant in Malaysia is being looked at as a model for SML's unit here," sources said.

Further, there is an aggressive focus on localisation, with a "target to have a localisation level of 85 per cent for the new products in the next four to five years," sources added.

SML's facility in Punjab is also undergoing expansion, as part of an investment plan announced earlier. Last year, the company had planned to increase capacity by investing about Rs 160 crore over the next three to four years. The investment would increase the company's production capacity to 36,000 vehicles from 10,000 units per year.

According to market analysts, the new launches would enable SML to cater to diverse segments of the market and increase its overall market share in commercial vehicles.

SML, earlier, had a technical tie-up with Mazda, which also has a 15.6 per cent stake in SML. The technical agreement with Mazda expired a few years back with the company having withdrawn from the manufacture of commercial vehicles. Sources say that Isuzu is being brought in by Sumitomo Corporation, which is stepping up its stake in SML to about 25 per cent from 10.4 per cent by purchasing half of Punjab Tractors Ltd's (PTL) 29.04 per cent stake in SML.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IOC's Gujarat refinery resumes operations

Aurobindo Pharma gets US approval for Efavirenz

Refinery capacity to be doubled

Ignorance of law: Is it feigned or real?

CLB orders Govt to appoint 2 directors on Morepen board

`Acquisitions: Indian cos outperform foreign firms'

Local opposition puts Chemfab desalination project in hot water

Madras Engg plans auto slack adjuster unit in SEZ

Ion Exchange sets up desalination plant in Nagapattinam

Ashok Leyland bullish on multi-axle vehicle segment

Swaraj Mazda to roll out medium, heavy commercial vehicles

Bentley launches Continental Flying Spur