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Mahindra sets up car assembly plant in Sri Lanka


Skyonline

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Mahindra sets up car assembly plant in Sri Lanka

Mahindra & Mahindra has set up an assembly plant in Colombo, Sri Lanka, as part of its initiative to push more volumes in the international market, at a time when domestic demand has been weak for the past one year.

The Mumbai-based automaker will from Saturday start assembling compact SUV KUV100 at the new plant, with a production capacity of 5,000 units per annum.

In collaboration with Ideal Motors of Sri Lanka, the plant has been built with an investment of over Rs 80 crore. The resultant entity has been christened Mahindra Ideal Lanka.  While Ideal Motors will own 65% of the joint venture, M&M will own the remaining.

Pawan Goenka, managing director of M&M, said the company would roll out more products over the next three years from the plant. “This is the first passenger car assembling plant in Sri Lanka. Sri Lanka is a key strategic market for us and we are now fully equipped to deliver products customised to local needs, on time,” Goenka said.

Mahindra Ideal Lanka will localise four components — batteries, tyres, seats and exhaust — to lower down the cost to some extent. Spread over 10 acre, the plant in Sri Lanka will employ around 200 people.  It was inaugurated by Sri Lanka PM Ranil Wickremesinghe.

https://www.financialexpress.com/industry/mahindra-sets-up-car-assembly-plant-in-sri-lanka/1678333/

 

20171004125418_KU4.jpg

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This can be a positive...if we Sri Lankans actually do it properly and diligently and actually learn some skills to build the local automotive scene.

As for the Kool Utility Vehicle. Seen quite a few of them running around in Malawi Build quality and feel wise it seems to be better than the Kwid. The SA reviews seem to be decent. Complaints seem to be that the engine is lethargic and unrefined and that the base models do not have safety features that are now common in the SA market.

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821455841_Bajajphoto.thumb.jpg.31292e59702364174234a5e20727a6e6.jpg

I don’t know about this vehicle and I am not going to compare it with a quality  Japanese vehicle.

But I am always positive, if you manufacture or assemble something in Sri Lanka. It gives our country more employment opportunity, technology and it may save some US dollars within Sri Lanka.

Let me tell you a story. Everyone can recognize above photo. This is a rear passenger side panel in Bajaj three wheeler. Previously these items were imported from India and quality was very poor, but price is cheaper than manufacturing it here. If something hit on this Indian part, it easily get whitening and get damaged.

Later Sri Lankan government introduced a rule that certain percentage of parts of three wheeler should manufacture in Sri Lanka. So all rubber parts, plastics parts, vinyl parts were manufactured in Sri Lanka. I was the plastic raw material supplier for Polypropylene plastics for some items and I supplied a Polypropylene Co-polymer grade from Taiwan (which use for making car bumpers) to manufacturer above side panel. The Sri Lankan manufactured side panel with my Taiwanese material was so strong and much higher in quality and safety and even a person can stand on it and it will not damage or break.. (Photo shows side cover made by my material). Later government increased import tax on three wheeler and three wheeler prices were increased accordingly. Then government wanted to reduce impact on three wheeler prices  increasing and government selected to withdraw of that rule with Sri Lankan made part percentage. Importing inferior quality Indian part is cheaper than manufacturing high quality Sri Lankan parts here. So simply Sri Lankan parts manufacturing stopped and now three wheeler comes with  Indian manufactured side panel. Ok, I lost  a business but I am a single person, but it became worst with various rubber and vinyl part manufacturers and their sub suppliers together with workers.

In the past , I worked for AmSafe Bridport in Wathupitiwala EPZ for a short period , and they manufacture OEM cargo parts for Boeing and Airbus air planes. Proud to say that our Sri Lankan hands do a good job there.

I am always positive if some product manufacture/assemble in Sri Lanka irrespective of the size and the value of the product, if the product is with reasonable quality.

Otherwise only potato would be the product we double check and get confirm before buying it,  that it is a Sri Lankan product.  (Me Lankawe Alada ? ?  )

 

Edited by Sampath Gunasekera
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