Daewoo Motor to invest more in India
25 Jun 1999
Emboldened by rising global demand for its Matiz small car model, and by the boost it has received from the recent enforcement of the Euro-I environmental norms for cars in New Delhi, the largest market for cars in India, Korea''s Daewoo Motor Company has decided to step up its investment in India.
Daewoo Motor will also invest in production facilities for the Matiz in Uzbekistan and Iran. The company already makes the Matiz model in Romania and Poland, besides Korea and India.
The Korean company will invest an equivalent of Rs 430 crore in its Indian subsidiary, Daewoo Motors India Ltd, in the current financial year ending March 2000. This investment will contribute to expanding the company''s facilities at Surajpur near New Delhi, upgrading existing models, and launching a luxury car. The company has already invested over $ 1 billion in the Surajpur plant.
The new model is likely to be based on the Korean company''s Nubira or Leganza models. Daewoo Motors India currently makes the Matiz, the mid-size Cielo and Nexia, and luxury buses Royal and Caravan at the Surajpur plant. The company aims to be present in every segment of the Indian car market.
Daewoo Motors India will also export Matiz to Egypt and some other Middle East countries. The export target for the current financial year is $ 60 million.