dogsquaw
27-10-2005, 09:14 PM
Thursday, October 27, 2005
International Cars & Motors Ltd (ICML), a joint venture between Sonalika Group and Britain’s MG Rover in March last year, targets selling 5,000 units of the SUV, Rhino Rover. The vehicle is expected to be showcased in the Auto Expo 2006. ‘We expect to sell 5,000 units in the initial month of the launch and aim to take it up to 24,000 units eventually,’ says LD Mittal, Chairman, ICML. ‘To start with, we have finalised 20 dealerships for the Rhino, in Punjab, Haryana, Chandigarh and Delhi. It would subsequently be launched in other parts of the country,’ he added.
The SUV that would initially be launched with a diesel engine, and will get a petrol sibling at a later stage. ‘We would also be looking at bringing in a CRDi engine,’ said Mittal. The Rhino, which would primarily be pitted against the Scorpio and the Tavera, is likely to be priced between Rs 5.5-6.0 lakh. Reportedly, owing to the tax holiday and other incentives offered by the Himachal Pradesh government, ICML would be able to save on an average of Rs 1.5-2 lakh per vehicle. ‘We would like to pass on these benefits to our consumers,’ says Mittal.
The Rs 1000 crore Rhino Rover project would be funded through a mix of private equity placements and debts. Out of the total amount, Rs 200 crore have already been invested and the remaining is likely to be finalised in the next two to three months. Meanwhile, Sonalika is also planning to make a foray into the light and heavy commercial vehicle segment. Mittal did not rule out the possibility of getting into a technical and financial collaboration with a commercial vehicle maker for the same. ‘We would firm up our plans only after the SUV is rolled out – maybe six months after the Rhino’s launch.’
Rover, Britain’s beleaguered carmaker, which entered into a technical joint venture with Sonalika last year, has recently been bought over by China’s Nanjing Automobiles and the British company’s future prospects seem to be very uncertain at this point in time. Sonalika has also signed a technical agreement with UK’s PowerTrain to manufacture CRDi engines and a six-speed gearbox. And both, the MG Rover Group and PowerTrain are a part of the US$3.5 billion Phoenix Venture Holdings Ltd. When asked whether Rover’s woes will have an impact on its tieup with Sonalika, Mittal claimed that the recent developments are not going to impact Sonalika’s agreement in any way, and that they have already received the technical know-how from the British car manufacturer. However, in terms of Rover’s future direction and product development, and Sonalika’s R&D capabilities, and marketing and brand building initiatives, there still seems to be a question mark hanging over the viability of the Rhino.
International Cars & Motors Ltd (ICML), a joint venture between Sonalika Group and Britain’s MG Rover in March last year, targets selling 5,000 units of the SUV, Rhino Rover. The vehicle is expected to be showcased in the Auto Expo 2006. ‘We expect to sell 5,000 units in the initial month of the launch and aim to take it up to 24,000 units eventually,’ says LD Mittal, Chairman, ICML. ‘To start with, we have finalised 20 dealerships for the Rhino, in Punjab, Haryana, Chandigarh and Delhi. It would subsequently be launched in other parts of the country,’ he added.
The SUV that would initially be launched with a diesel engine, and will get a petrol sibling at a later stage. ‘We would also be looking at bringing in a CRDi engine,’ said Mittal. The Rhino, which would primarily be pitted against the Scorpio and the Tavera, is likely to be priced between Rs 5.5-6.0 lakh. Reportedly, owing to the tax holiday and other incentives offered by the Himachal Pradesh government, ICML would be able to save on an average of Rs 1.5-2 lakh per vehicle. ‘We would like to pass on these benefits to our consumers,’ says Mittal.
The Rs 1000 crore Rhino Rover project would be funded through a mix of private equity placements and debts. Out of the total amount, Rs 200 crore have already been invested and the remaining is likely to be finalised in the next two to three months. Meanwhile, Sonalika is also planning to make a foray into the light and heavy commercial vehicle segment. Mittal did not rule out the possibility of getting into a technical and financial collaboration with a commercial vehicle maker for the same. ‘We would firm up our plans only after the SUV is rolled out – maybe six months after the Rhino’s launch.’
Rover, Britain’s beleaguered carmaker, which entered into a technical joint venture with Sonalika last year, has recently been bought over by China’s Nanjing Automobiles and the British company’s future prospects seem to be very uncertain at this point in time. Sonalika has also signed a technical agreement with UK’s PowerTrain to manufacture CRDi engines and a six-speed gearbox. And both, the MG Rover Group and PowerTrain are a part of the US$3.5 billion Phoenix Venture Holdings Ltd. When asked whether Rover’s woes will have an impact on its tieup with Sonalika, Mittal claimed that the recent developments are not going to impact Sonalika’s agreement in any way, and that they have already received the technical know-how from the British car manufacturer. However, in terms of Rover’s future direction and product development, and Sonalika’s R&D capabilities, and marketing and brand building initiatives, there still seems to be a question mark hanging over the viability of the Rhino.