Daewoo Motors India Ltd has firmed up plans to import diesel engines for the commercial vehicles it is planning to launch in India soon. It also intends to set up a parallel dealership chain to sell its buses and commercial vehicles.
The diesel engines are to be sourced from the Daewoo Avia plant in Czechoslovakia.
Though Daewoo Motors has set up a full-fledged engine and gearbox unit at its plant in Surajpur, the Rs 1,400 crore facility can make only petrol engines.
"We do not have any immediate plans to make diesel engines in India. We have decided to import the engines for the commercial vehicles," Daewoo's managing director S G Awasthi said.
"We will, however, indigenise some engine components in a gradual manner,'' Awasthi said. "We are looking at a production of only about 15,000 vehicles. This volume does not justify the setting up of a diesel engine shop,'' he added. Awasthi also ruled out the possibility of dieselising its passenger car models. "We are not planning to introduce diesel models of the Cielo and the small car Matiz,'' he said.
Daewoo plans to launch two buses `Royale' and `Caravan' in the 6 tonne gross vehicle weight segment later this year. Both models are to be fitted with a four-cylinder turbo-charged diesel engine.
The buses will be followed by the launch of light commercial vehicles for carrying goods during the next financial year. Daewoo will also be setting up a separate chain of about 15 to 20 dealers initially for its light commercial vehicles.
"Though existing passenger car dealers may also be offered the commercial vehicle dealerships, separate showrooms will be created for commercial vehicles," company sources said.
