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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Bitte_Kein_Lexus wrote:Interesting. They should be able to undercut the Chinese ones easily.

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.

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.