Mahindra forays into Lankan market with automotive assembly plant | Sunday Observer

Mahindra forays into Lankan market with automotive assembly plant

Dr. Pawan Goenka
Dr. Pawan Goenka

The opening of the Mahindra automotive assembly plant in Welipenna is a significant milestone for Mahindra in the Sri Lankan market, Managing Director, Mahindra & Mahindra Ltd (M&M), Dr. Pawan Goenka said yesterday.

“Sri Lanka is a key strategic market for us and we are now fully equipped to deliver products customised to local needs, on time. I thank the Government for their unstinted support and am very optimistic that the assembly plant will not only add to industrial growth in the country but will also generate significant employment opportunities at our plant and at the supplier’s end,” he said in a statement prior to opening the assembly plant yesterday.

Mahindra & Mahindra Ltd., a part of the US$ 20.7 billion Mahindra Group tied up with Ideal Motors of Sri Lanka to launch the new venture ‘Mahindra Ideal Lanka Pvt Ltd’.

The assembly plant rolled out its first product, the compact SUV, KUV100 and will roll out a slew of products over the next three years.

Chief of International Operations, Mahindra & Mahindra, Arvind Mathew said, “Our partnership with Ideal Motors over the years has gone from strength to strength as we draw upon mutual synergies for a win-win association. I am confident that the new assembly plant will further maximise industrial activities, speed up operational effectiveness and enable us to serve customers better in Sri Lanka.”

Chairman of Ideal Motors, Nalin Welgama said, “Ideal Motors and Mahindra have been partnering each other for a decade to deliver value to customers in Sri Lanka. Today’s inauguration signals the epitome of our dream and ambition, which was to assemble a passenger vehicle locally, by partnering with an auto major such as Mahindra, known for its tough and rugged DNA. The new partnership will enable Sri Lanka to ‘rise’ and manifest its glory through the ‘Made in Sri Lanka’ route.”

“We in Sri Lanka can now proudly join an elite list of recognised car assemblers around the world,” said Deputy Chairman Ideal Motors, Aravinda de Silva. “A primary feature of this partnership between M&M and the Ideal Group is the transfer of the latest technology in the automobile industry to talented Sri Lankan youth who will be the greatest beneficiaries of this venture.”

Mahindra Ideal Lanka will assemble the KUV100, a compact SUV, with a production capacity of 5,000 units per annum. Spread over 10 acres, the plant uses state-of-the-art technologies. Mahindra Ideal Lanka will localise four components: battery, tyres, seats and exhausts. The plant is expected to provide employment to 200 people directly and indirectly over the next two years.