The Hindu Business Line : `It's no rocket science': B.V.R. Subbu confident of driving greenfield car

Hyderabad May 2 "Building a car is not rocket science," says the former Hyundai President, Mr B.V.R. Subbu. "We don't have to reinvent the wheel. All it calls for is striking right strategic partners and keep focussed on roll out of these cars."

Now the Chairman of MLR Motors, a Hyderabad-based company setting up a greenfield car plant, Mr Subbu has a new challenge - "to deliver cars starting from scratch," in his own words.

"We have acquired intellectual property rights (IPR) of a B segment car from a European company, and have short-listed three UK based designers for the power train. We expect these designs to be through by June-July 2007 and one platform would be able to deliver more than two-three models," he said.

Mr Subbu however refrained from providing any additional information about the engine options and pricing on the grounds of competing interests. "This would amount to revealing our game plan, which may not be right at this point in time," he said.

"A 600 cc car of today's design is as efficient as say a 1,000 cc car a few years ago. We will bring in the best both in the petrol and diesel versions and price it competitively and offer what people demand. The designers have been mandated to offer a car that competes with the best even as it rolls out of the factory being set up near Toopran in the backward Medak district of Andhra Pradesh, but also has right appeal to take on the most competitive in the industry," he explained.

Will they consider Rs 1 lakh car like Tatas? "If the market demands such an offering we would not hesitate to pursue this," he said.

Asked if they would like to use the recently acquired facility of Daewoo at Surajpur, Mr Subbu said that the Daewoo plant was one of the most advanced car plants in the country and had the capability to offer significant synergies both for engines as also components.

While several people have doubts about MLR Motors' ability to design and develop and then manufacture a car that is contemporary and cost-effective, Mr Subbu's association with the company is seen as the most significant move that would ensure that this car project goes through.

Mr Subbu said that they are in the process of hiring a CEO from a major car company, but did not divulge who this would be.

Will MLR Motors, a non-entity be able to take on Maruti and the likes of Hyundai? Mr Subbu said that when Hyundai was beginning production in India, nobody gave it any chance. Maruti then enjoyed 92 per cent share, today it has 52 per cent.