Mahindra Sri Lanka JV plant to produce mini-SUVs from June
ECONOMYNEXT – A joint venture plant between Sri Lanka’s Ideal Motors and Mahindra and Mahindra of India will begin assembling 100 mini-SUVs a month from June, officials said.
The 50 million US dollar assembly plant has a capacity of 1,000 units a month, Ideal Motors Deputy Chairman Aravinda de Silva said. Ideal Motors has a 65 percent stake in the plant and Mahindra 35 percent.
The plant will initially produce KUV100 mini SUVs, but the production line could be re-jigged to assemble other models as well, he said.
The vehicle will initially have Sri Lanka-manufactured seats with a domestic value addition of about 35 percent.
Ideal Motors Chairman Nihal Welgama said more than 65,000 Mahindra vehicles were now on the roads and its mini-truck had caught a 45 to 50 percent market share.
Ideal Motors was set up in 2009.
The firm also launched BS-4 standard (Euro-4 emission standard compliant) Maxximo Heavy Duty truck.
Sri Lanka has regulated that all imported vehicles comply to the Euro-4 standard. (Colombo/Mar27/2019-SB)