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)
 

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