The Hindu Business Line : San Motors may contract manufacture for French co

San Motors the automotive division of the San Group and makers of the convertible San Storm is set to bag a contract manufacturing order from a niche French car company.

The French company, quite similar to Britain’s Morgan, TVR and Lotus kind of small car companies, has been manufacturing a model that is available in coupe and convertible form; this model will soon be manufactured at San Motor’s plants in the country, said Mr Behram Ardeshir, Director, San Motors. Due to corporate reasons, the name of the company or the model was not disclosed.

Mr Ardeshir said that production is likely to commence by the end of this year. It was not yet decided whether the facilities (Goa and Bangalore) would be utilised or one of them singled out. At present, the Goa facility has a production capacity to assemble 3,000 cars on an annual basis, while the Bangalore facility is utilised to manufacture the chassis and body of the San Storm. They are later transported to the Goa facility for final assembly.

The company would start manufacturing the French model with an initial local content of 40 per cent that is likely to grow to 60 per cent in the near future. Sans the powertrain, the complete car would be shipped to France. Mr Ardeshir said that the French company like other niche small car players has been outsourcing the powertrain from another automotive company, hence, it would fit the powertrain at its factory premises.

In talks with UK co

San Motors is in similar talks with a British car company though Mr Ardeshir said that it would be pre-mature to talk about it right now. Contract manufacturing has now become a trend among small and big international auto majors to offset rise in manufacturing costs in developed nations.

Now, the company is conducting tests on a new convertible completely designed in-house that will have a 1.6-litre engine, said Mr Ardeshir.