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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