Business Daily from THE HINDU group of publications
Friday, Mar 21, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Mar 21, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Research & Development Argentum plans R&D hub for global product development work Priyanka Vyas New Delhi, March 20 Argentum Motors, the company formed after taking over the erstwhile facility of Daewoo Motors, has a game plan beyond just contract manufacturing of cars and commercial vehicles. Promoted by the former Hyundai President, Mr B.V.R. Subbu, Director Promoter of SpiceJet, Mr Ajay Singh, and Mr Ashish Deora, Argentum plans to turn the existing R&D facility in the premises into a hub for global product development work. It is planning to offer the unit to global car makers who are seeking to drive down costs in their home countries. “Daewoo’s research and development facility has all the tools and testing equipment, which global OEMs (original equipment manufacturers) can avail of as they shift their development work to India to reduce costs,” said Mr Singh, Chairman of Argentum Motors, to Business Line. He said the OEMs could also utilise the test tracks which Daewoo had built for their vehicle testing requirement. Alternatively, Argentum Motors is also chalking out a strategy by talking to global vehicle certification agencies who could establish their facilities here to facilitate the exports of certain components and products. Export standardsCurrently, agencies such as the Vehicle Certification Agency, and TUV of Germany already have a presence in the country. This makes it easier for companies to get their product approved in terms of meeting emission standards and other regulations in those countries while exporting. “We are in talks with vehicle certification agencies that can approve specific products getting exported to those markets. Collaboration with such agencies would also make it easier for auto and component makers who plan to export from India to those countries,” explained Mr Singh, declining to comment on the specific agencies that the company was in discussion with. Reducing costsGlobal car-makers like Hyundai, General Motors, Nissan-Renault are already expanding their development and engineering work out of India. Argentum’s plan would be more beneficial to companies who are exploring opportunities to start their development work in India and export their vehicles at a reduced cost. “This will be the biggest facility in this part of the world. So a lot of global companies can avail the facility at roughly one-third the cost, instead of sending their vehicles to western markets for certification,” said a Society of Indian Automobile Manufacturers spokesperson. Argentum has a capacity to manufacture 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting divisions per annum. It plans to contract manufacture four lakh small cars. More Stories on : Research & Development | Cars
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