Concorde To Service Car Makers Other Than Telco

Concorde Motors Limited a joint venture between Telco and Jardine International Motors Mauritius Ltd "" is for the first time opening its services to car manufacturers other than Telco. Concorde has sought and received permission from the government to repair, refurbish and upgrade cars of other manufacturers in the country. The reason, as given by the company to the government, is that the dealers have excess capacity at their locations. Concorde earlier had received permission from the Foreign Investment Promotion Board (FIPB) under which it was made clear that it would not get to sell, service, repair and upgrade cars other than that of Telco or its affiliate's passenger cars. But in a fresh application, the company has sought permission for dealing in cars made by other manufacturers. It has, however, clarified that it will not undertake purchase and resale of cars of other manufacturers. The department of heavy industry (DHI) did not support the proposal which came up with the FIPB noting that the activity related to sale and purchase of old cars amounted to trading. Even the department of commerce supported the DHI viewpoint. It noted that the present proposal might "weaken the country's bargaining power in WTO negotiations." But the FIPB cleared the proposal for approval of the commerce minister and noted that "the present proposal only sought permission for the additional activity of servicing, repairing, refurbishing and upgrading cars of all manufacturers." Further, the note says that approval was given to Concorde Motors subject to the condition that the company would not get into the sale and purchase of cars made by manufacturers other than its joint venture partners. Concorde had earlier been granted FIPB approval for establishing an automobile retail and after-sales company to operate dealerships of Telco and it's affiliates' passenger cars. It has also received the FIPB nod to provide consultancy and software solutions to other car dealers in and outside India and also to expand the present network of Telco/Telco affiliates' dealerships throughout India. Concorde has also received the FIPB approval to deal in spare parts/accessories by having a central procurement and distribution outfit in order to meet the needs of operations throughout the country. As per the FIPB note, the approved foreign equity is 50 per cent amounting to Rs 62.5 crore in the enhanced paid up capital of Rs 125 crore in the new joint venture company to be subscribed through Jardine International Motors Mauritius Ltd (a 100 per cent subsidiary of Jardine International Motors Limited).