Two Indian vehicle manufacturers to set up plants in Cambodia

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Two Indian vehicle manufacturers to set up plants in Cambodia

Postby Rutiger » Sun Feb 21, 2016 11:38 pm

Looks like the major components will still be imported, but jobs are jobs. :thumb:
Indian auto firms plan factories
Fri, 19 February 2016

Two major Indian auto manufacturers are increasing their presence in Cambodia by setting up manufacturing facilities to target the potential in the Kingdom’s automotive sectors, a representative from a visiting Indian business delegation said yesterday.

Speaking on the sidelines of engineering expo Indee Cambodia, Ravi Sehgal, vice chairman of the Engineering Export Promotion Council of India (EEPC), said Tata International and Bajaj Auto will open manufacturing plants in Cambodia, with the former focusing on light commercial vehicles and Bajaj sticking to two and three wheelers.

“We have discussed with the Cambodia Chamber of Commerce the possibility of setting up the Tata plant in Sihanoukville Special Economic Zone,” he said, referring to the 1100-hectare Chinese-owned industrial park on the outskirts of Sihanoukville.

He said Tata will look to import vehicles from India, but will supplement this with manufacturing operations possibly starting next year.

Parth Krishna, the business management officer for Bajaj Cambodia, confirmed the company’s foray into manufacturing in Cambodia, adding that it had started construction of a plant in Stung Meanchey and was awaiting final approval from the Council for Development of Cambodia before commencing operations.

“When we get full approval we can start importing all the machinery and run at 100 per cent [capacity],” Krishna said. “The project is for assembly and manufacturing of some certain parts. We don’t build the engine here, but we will produce seats and other small parts.”

Krishna said Bajaj had spent $2 million so far to build the plant. While the group had had sold around 300 to 400 three wheelers in Cambodia so far, Krishna said that number would go up as the price would fall once they start manufacturing here.

“The market for our three-wheel vehicles is different from tuk-tuks,” he said “But right now import taxes are very expensive, so the price of three-wheelers is expensive, around $2,500.”

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http://www.phnompenhpost.com/business/i ... -factories
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby Bitte_Kein_Lexus » Mon Feb 22, 2016 6:50 am

Interesting. They should be able to undercut the Chinese ones easily.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby Rutiger » Mon Feb 22, 2016 7:16 am

Bitte_Kein_Lexus wrote:Interesting. They should be able to undercut the Chinese ones easily.
Let's hope so. Those kinds of heavy manufacturing jobs usually create many more support jobs from logistics and delivery drivers to cafeteria workers. That type of manufacturing is something that has been seriously lacking in Cambodia. If the first movers are successful, the chain is then properly in place for other manufacturers to open shop here too. I hope they hire and train locals instead of bringing in Indian workers.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby TheGrinchSR » Mon Feb 22, 2016 10:16 am

Maybe, I'm the only one but I can see the demand for Cambodian made vehicles being sub zero. No sane Chinese person will drive a Chinese made car if they can afford not to do so either; it's also why Chinese car exports are three-fifths of fuck all compared to production and why more than 100 million Chinese cars languish in open spaces having never been driven. Cambodian made cars are unlikely to match even the low production standards of Chinese ones.

One Chinese manufacturer even had a problem with their cars spontaneously combusting...
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby Rutiger » Mon Feb 22, 2016 10:24 am

If the price is low enough, people will buy them. People in the western world bought over 800,000 Yugos for Christ's sake. If it wasn't for the complete implosion of Yugoslavia at the time, they might have sold millions.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby AE86 » Mon Feb 22, 2016 12:40 pm

I'm thinking that the parts are going to be made in Cambodia but under direction of Bajaj/Tata if I read that right. It's like how Honda has a factory in Swindon, but no one balks at the build quality of "British" built vehicles.

Besides, most motorcycles in Cambodia are constructed in Cambodia as knock down kits (both Suzuki and Honda), and the build quality isn't all that bad, not compared to Thai vehicles.

The only thing is though, Bajaj aren't known for being quality motorcycles yet, at least previous owners I've spoken to, and the one of two Bajaj I've had were horrendously bad. The Pulsar was okay, the 200cc something (forgot the name) was terrible. So having a not so great name to begin with might cause problems. That being said though, I'd sooner trust a Cambodian built motorcycle under Indian management vs. a Chinese built motorcycle from China.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby juansweetpotato » Tue Feb 23, 2016 1:30 am

AE86 wrote:I'm thinking that the parts are going to be made in Cambodia but under direction of Bajaj/Tata if I read that right. It's like how Honda has a factory in Swindon, but no one balks at the build quality of "British" built vehicles.

Besides, most motorcycles in Cambodia are constructed in Cambodia as knock down kits (both Suzuki and Honda), and the build quality isn't all that bad, not compared to Thai vehicles.

The only thing is though, Bajaj aren't known for being quality motorcycles yet, at least previous owners I've spoken to, and the one of two Bajaj I've had were horrendously bad. The Pulsar was okay, the 200cc something (forgot the name) was terrible. So having a not so great name to begin with might cause problems. That being said though, I'd sooner trust a Cambodian built motorcycle under Indian management vs. a Chinese built motorcycle from China.
Well said. I always liked the Pulsar.They import them a lot in Uganda. Interesting about the Cambodian Honda kits. Do they do any manufacturing in Honda Vietnam factories?
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AE86
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby AE86 » Tue Feb 23, 2016 9:58 am

^^Honda Vietnam manufactures most of their own parts. Frames, plastics, engines components both small and large (gaskets to pistons), tyres, etc. I do know they import some of the electrics from Japan though. Vietnam also makes many complete scooters for the Japanese market.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby juansweetpotato » Tue Feb 23, 2016 12:23 pm

AE86 wrote:^^Honda Vietnam manufactures most of their own parts. Frames, plastics, engines components both small and large (gaskets to pistons), tyres, etc. I do know they import some of the electrics from Japan though. Vietnam also makes many complete scooters for the Japanese market.
Thanks for that. I didn't know they manufactured all those things, especially the scooters for export to the Japanese market. They are coming along.

As for the electrics, that doesn't surprise me. I had a MInsk for three years, got it completely rebuilt and did many clicks on it it before the one thing I didn't change went. The rear wheel bearings.

The mechanic I took it took in Vung Tau did the job and took it for a test spin. He was gone ages. i took the bike on a journey and 300 klms later the coils went. I'm pretty sure he must have swapped them the git, because ever since that day I would replace them with Vietnamese coils (only get the Russian ones if you buy the complete dynamo) and they used to burn out every 300 klms, almost on the dot. Up till that point it was 1000's and never burnt out. Apparently the Viet replacement coils are famous for it.

You would have thought it would have been fairly easy for them to manufacture decent coils by now, but apparently not.
I have had my Honda wave made in Vietnam for around 3 years now, never had any probs, touch wood.
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Re: Two Indian vehicle manufacturers to set up plants in Cambodia

Postby willyhilly » Sat Mar 26, 2016 5:29 am

The little Bajaj car with the tiny single cylinder motor at the rear could be a winner. They are advertised on Khmer24 for about $3200. Much safer than a moto or tuk tuk.

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