Financial Daily from THE HINDU group of publications
Friday, Oct 25, 2002
Financial Daily from THE HINDU group of publications Friday, Oct 25, 2002 |
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Corporate
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New Projects Pajero rolls out of HM's new Chennai plant Our Bureau
CHENNAI, Oct. 24 HINDUSTAN Motor (HM) on Thursday rolled out its first Pajero from the new facilities here that cost the company Rs 12 crore to set up. The Chennai Car Plant, which has been producing Lancers in the past four years, will henceforth also produce 100 Pajeros per month. Two versions of the Sports Utility Vehicle are being made here — the GL that costs Rs 19.7 lakh (ex-showroom Delhi) and the GLX that costs Rs 23.7 lakh. Both the vehicles are powered by a 2.8-litre, eight-valve, turbocharged, intercooled diesel engines of Mitsubishi. The 3.2-litre version of the vehicle will continue to be imported in the fully-built form. This vehicle would cost around Rs 33 lakh. Considering the niche segment that the vehicle fits in, the sales target has been fixed at a modest level of 1,200 units per month, which HM's Managing Director Mr A Sankaranarayanan feels, is achievable. Scaling up the production would be considered on the basis of how well the vehicles are received in the market. Almost all the parts in the Pajero GL and GLX are imported in CKD form (at 35 per cent import duty). Only the tyres, music system, paints and other consumables are purchased locally. At a press conference following the launch, the HM officials said the scaling up of indigenisation would also depend upon the sales volumes. Mr Sankaranarayanan said HM had to make fresh investments — Rs 12 crore — on setting up a separate body building plant (where the pressed metal parts are welded) and a separate assembly line (as the existing assembly line for Lancers is too fast for the Pajero). All other sections, such as the paint shop, are common for both Lancers and Pajeros. He also said the company would make profits on the Pajeros even at this volume at the current pricing.
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