Pal-Peugeot Mulls Step-Up Of Diesel 309 Production

The diesel version, expected to be priced around Rs 6 lakhs, will compete against Escort, a diesel version launched by Mahindra Ford.

PAL-Peugeot would not go for in fresh bookings for diesel cars but offer its existing 40,000 customers the option to choose either the petrol or diesel versions. According to J Manlay, deputy managing director, the diesel machine would be powered by the PUD5 1526cc engine having a fuel efficiency of 20 kms per litre.

Peugeot is considered to be the best in diesel technology worldwide. PAL-Peugeot had earlier received 1,08,000 bookings for the 309.

The company, which is planning to lift the lockout at its Kalyan plant from next week would commence the 309 operations by producing the diesel version.

 

Industry analysts feel PAL-Peugeot's strategy is similar to the one adopted by Mahindra Ford for the Escort. More than 60 per cent of the total capacity for Escort would be diesel powered. Mahindra Ford is manufacturing 25,000 Escort cars at its Nashik facility.

According to Manlay, PAL-Peugeot, due to its ongoing labour problems has lost valuable time, image and market share. It is, therefore, seriously considering launching the diesel version as fast as possible, to control the damage.

The company was among the first ones to introduce a new model in the mid-size passenger car segment.

It is felt that the new diesel engine is likely to be one of the key factors for Peugeot operations in India.

The company intends to introduce a new model by the end of 1997 based on this engine. The new model is likely to be a multipurpose vehicle.

Meanwhile, according to Manlay, the company's indigenisation plans are going as planned. At present, nearly 31 per cent of the components of the 309 are being sourced locally. It is expected to reach 40 per cent by March 1997 and as much as 71 per cent by March 1998.

The company currently sources locally parts like glasses, instrument panel, front bumpers, complete seats, exhaust systems, wheels, tyres, batteries and wipers.